The Government's books remain in the red after the first four months of the current financial year but are in better shape than anticipated.
Treasury has released the accounts for the four months to October and they show a deficit of $478 million, which was $687M lower than it had expected.
For the same period last year it was $1 billion in deficit.
Driving the better-than-expected result was $367M more in tax revenue than forecast, taking it to $22.1b, while ACC results were $263M higher than estimated.
Core government expenses, at $24.5b, were close to forecast.
The final accounts for the 2014/15 financial year, which ended on July 31, showed a surplus of $414M.