Beating the forecasts of economic experts and government agencies, New Zealand’s cash budget deficit declined during the third quarter on accounts of delays in spending, according to a release issued by treasury department in Wellington.

Treasury’s financial statement released today states, "Higher than forecast investment returns reported by the NZS Fund and ACC ($1.4 billion and $0.7 billion respectively) offset the tax result meaning the operating balance deficit was slightly better than forecast."

The cash deficit stood at NZ$3.29 billion for the three months by September 30 which is below the earlier forecasts of the government’s treasury department. It was for the first time in the history of New Zealand in past nine years when budget cash deficit has been observed.

Moreover, Finance Minister Bill English was optimistic about further widening of deficit due to rise in number of government’s debts. He had added some time ago that decline in tax receipt and more public spending by the government to beat recession would have adverse impact over economy.

Budget’s operating deficit stood at NZ$175 million, primarily, due to gain reported by government’s pension fund and accident insurance body. Gross sovereign debt was also declined against the projections of 39 per cent rise by June 2013.