The New Zealand government's financial position has proven more resilient than expected amid the ongoing fuel crisis, with the latest Crown accounts showing a deficit of $8.4 billion for the nine months to March 31. This represents a significant improvement of $2.1 billion compared to Treasury forecasts made in December, measured by the traditional operating balance before gains and losses. The better-than-expected result comes as the government absorbs the economic impacts of Middle East conflict, with core Crown expenses running 1.2% lower than forecast due to stronger-than-expected tax debt collection by the Inland Revenue Department.

Meanwhile, the government has been developing contingency plans for potential fuel supply disruptions, outlining who would qualify as 'critical fuel users' under phase 4 of the National Fuel Response Plan. These accounts represent Treasury's final release before the crucial May 28 Budget, providing a clearer picture of the government's fiscal position as it navigates international energy market volatility. The new ObegalX measure, which excludes Accident Compensation Corporation impacts, shows a slightly smaller deficit of $7.8 billion, further reinforcing the improved fiscal outlook.