Despite large spending on New Zealand’s Covid-19 response, the Government's books are in a better shape than was expected earlier this year according to Treasury forecasts.

The Government’s Financial Statements for the year, ending in June 2022, include the Omicron and Delta outbreaks that saw New Zealand’s biggest city in a lockdown for months and record numbers of Covid cases.

Finance Minister Grant Robertson says while these statements cover the toughest period during the global pandemic, New Zealand was in a "favourable position".

The OBEGAL (Operating Balance before Gains and Losses) deficit is around half of what was forecast at Budget 2022, at $9.7b.

While expenses were $3.9b below forecast in Budget 2022, they still exceeded revenue by $9.4b.

Net debt sits at 17.2% - roughly what was forecast earlier this year.

Comparatively, this is around half the level of Australia, a quarter of the UK, and a fifth of the US.

Revenue, the money the Government allocates itself to spend, is at $141.6b.

This is $12.3b higher than the same time last year, and $5.8b higher than was forecast in Budget 2022.

Treasury attributes this to a growth in tax revenue, which makes up a third of the Crown’s revenue, with Robertson referencing significant corporate profits and low unemployment rates.

Expenses are $17.2b higher than last year, at $151b, largely due to the Covid-19 response.

The greatest spending was in health - $27.8b.

The main focus of this was on the Covid-19 vaccination programme, testing and laboratory capacity, and MIQ.

The country's net worth increased by $17.1b over the year.

Robertson said that today marked the end of the emergency economic response due to the global pandemic.

"I am going to be taking a balanced and cautious approach to the next chapter of the global economic story," he said.

He continues to rule out tax cuts for high-income New Zealanders and says National is “wrong” to make these promises.

National Leader Christopher Luxon said the numbers provide plenty of scope for tax cuts applied to "everyday New Zealanders".

"The Government's coffers are absolutely awash with cash and they should be able to provide tax relief."

Economic and political commentator Bernard Hickey says while the Government's new financial outlook would allow some tax breaks, that's far from the only option on the table.

"There's plenty of money for this Government if it's worried about not being elected next year to use this strong budget system to come up with some kind of middle-class welfare, some sort of tax cut, maybe some threshold changes, extra payments like the cost of living."

Infometrics principal economist and director Brad Olsen said the results are surprising.

"We were expecting worse," he said.

"That's a substantial improvement and really down to the high levels of earnings that have happened across the country."

But while the figures are a step in the right direction, he notes much of the high earnings flowing into Government coffers is due to inflation and rising prices pushing up the amount of money gathered through GST.

"There are a lot of challenges ahead to get the books back in a more balanced position."

Government revenue: $141.6b, $5.8b higher than forecast in Budget 2022

Government expenses: $151b, $3.9b lower than forecast in Budget 2022

Net worth: $174.3b

Net debt: $61.9b (17.2% of GDP)