New Zealand's budget cash deficit was narrower than the government forecast after increased dividends from state agencies, fewer asset purchases and one- time payments for tax from banks.

Today, the Treasury Department said in a statement released in Wellington that the shortage of cash totaled NZ$7.86 billion ($5.6 billion) in about nine months, which ended in March 31, or NZ$47 million lesser than it was predicted in December's economic update.

This week, Finance Minister Bill English said that the financial system is getting better from downturn and the May 20 budget would be utilized to rouse development and sustain speculation.

He estimated about six years of shortfall as there is a rise in debts, in December.

According to the Treasury, bonuses from administration organizations were NZ$212 million advanced than estimated after a better expense from the Housing NZ Corp. Buying of assets were about NZ$116 million, which was less than estimated.

The Treasury also said that tax receipts were NZ$149 million less than estimated in the nine months through March, due to a fall in income tax and expenses by people.

It said that without expenses from banks, firm tax receipts were considerably lesser.