How the Crown's Investment has been Funded
This section complements the commentary in Section 2 for the period from 2007 to 2010.
Sources of funds 2007 to 2010
Over the period, total assets increased by $43.1 billion from $180.3 billion to $223.4 billion, including revaluations of existing assets.
As explained in Section 2, these investments were funded by a variety of sources - including borrowing, taxation, the existing asset base, cash generated by SOEs and third-party revenues.
Year-by-year analysis 2007 to 2010
This section analyses the sources of funds and their application on a year-by-year basis beginning in 2007.
As in Section 2, it breaks total investments into broad PPE and non-PPE and other categories. It then seeks to examine how those investments have been funded.
Table 4.1 shows investments over time, and gives an indication of how these have been funded. Tables 4.2 to 4.4 then provide more details for different asset classes.
Funding sources for investments
Funding sourced from core Crown activity:
|Used to purchase PPE||1,308||1,414||2,019||1,559||6,300|
|Used for past budget capital allowances||1,236||864||1,504||1,234||4,838|
|Used for contributions to the NZS Fund||2,048||2,104||2,243||250||6,645|
|Used for issuing student loans||621||572||640||771||2,604|
Other funding sources:
|Student loan repayments||555||629||710||754||2,648|
|Proceeds from asset disposals||292||244||405||252||1,193|
|Hypothecated revenue for roading||888||1,034||1,232||1,267||4,421|
|Financial and operating returns from CFIs||2,497||1,737||2,215||2,951||9,400|
|Valuation gains/(losses) on CFI investments||1,644||(1,704)||(4,025)||2,532||(1,553)|
|Borrowing by SOEs||389||529||321||814||2,053|
|Operating surpluses generated by SOEs||1,153||1,199||1,777||1,429||5,558|
Source: The Treasury
- New Zealand International Financial Reporting Standards (NZ IFRS) figures are available from the 2007 year, meaning that data are comparable across years.
- Additions differ from net movements in PPE as, for any given year, net movements will also include disposals, revaluations and depreciation.