Crown liabilities
- Figure 36 - Changes in liabilities over the forecast period (2010 to 2015)
- Source: The Treasury
Over the next five years, total liabilities are forecast to increase in value by $44.8 billion (about 34.9%) as shown in Figure 36.
Borrowings are forecast to increase by $36.9 billion of which $32 billion relates to additional Government bonds as a result of an operating deficit being run over the period. The remaining increase in the borrowings value is owing to a higher level of SOE borrowings (including Kiwibank). By 2015 the Government will have $106.7 billion of debt which will require annual interest payments of $5.6 billion. Interest payments will take up 8.3% of the annual tax take.
Claims liability for ACC is forecast to increase by $8.4 billion owing to the Scheme maturing.
