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.

Finance Minister Bill English and Revenue Minister Peter Dunne, this afternoon came up with a press statement, revealing that they will "carefully consider" advice from the tax working group, which says that major tax reforms are needed.

"For ordinary New Zealanders, we're particularly keen to ensure that our tax system rewards effort, encourages savings and helps families to get ahead", added English.

Improving market conditions indicating economy back on right track, are steadily picking up economic outlook in New Zealand. Recently released figures by treasury indicate that economic slowdown had not impacted economy as much as earlier projected.

However, Finance Minister Bill English observed that challenges are still there and a lot of needs to be done to completely get rid of recession like situation which gripped the economy. English said that impact of recession would continue for some time as economy is still under pressure.

Over $12,000 of the taxpayer-funded accommodation allowance would be paid back by Deputy Prime Minister Bill English, which he has received for living in his $1.2 million family home in Wellington.

A lot of inspection had been going on Mr. English after it was put forward by The Dominion Post that a sum of $1000 a week was being claimed by him for living in the home, which has been classed as his ministerial residence.

As per the media reports, the right to receive $700 a week to pay for his family home in Wellington has been defended by the Finance Minister Bill English, as he believes that he is not claiming anything he is not entitled to as a minister.

Thursday, the figures were made public as part of a wider release of travel and accommodation allowances paid to MPs and ministers.

If Mr. English's case is taken under consideration, then, as a minister representing an electorate outside Wellington, he is eligible for considerable accommodation assistance.

The finance companies received a warning yesterday from Finance Minister Bill English to sort themselves out, as he considered the future course of action with regard to the retail deposit guarantee scheme.

It is in October 2010 that the scheme, introduced by the previous Labour-led Government during last year's election campaign, will run out.