WELLINGTON, Oct. 14 (Xinhua) -- New Zealand's center-right government reported its first operating surplus since coming to power in 2008 for the fiscal year to the end of June, according to Treasury figures out Wednesday.
The surplus of 414 million NZ dollars (275.8 million U.S. dollars) was equal to 0.2 percent of gross domestic product (GDP).
Core government expenses grew by 1.2 billion (799.68 million U. S. dollars), or 1.7 percent, but this was lower than the pace of economic growth, which led to spending falling to 30.1 percent of GDP, compared with over 34 percent four years ago.
The surplus met a target set in 2011 following the Canterbury earthquakes and the international financial crisis and was a significant milestone, Finance Minister Bill English said in a statement.
The figures indicated the overall finances had been radically turned around in the years since they had to absorb cumulative shocks outside of the control of the government, he said.
"Our focus must remain on steady and ongoing reductions in public debt over the medium term. That is the most prudent approach to take in a still uncertain global environment," English said.
"The economy is growing. It recently registered its 18th consecutive quarter of expansion to deliver annual growth of 2.4 percent in June 2015."
However, opposition parties said the surplus had come at the cost of public services, which had been cut and squeezed.
Funding cuts had affected schools and police operations, said the opposition Green Party.
"With better financial management, the government can achieve a surplus while enhancing government services, making life better for our children, and cleaning up our air and water," Green Party finance spokesperson Julie Anne Genter said in a statement.
The main opposition Labour Party said Wednesday the government would be unlikely to see another surplus in the years ahead.
"In the last Budget, Bill English promised surpluses over the next three years but with economic growth flattening out and major industries like dairy struggling, this year's books and the years after will be in the red," Labour finance spokesperson Grant Robertson said in a statement.
