The Treasury

Global Navigation

Personal tools

Government
Publication

Budget 2012 Home Page Budget Economic and Fiscal Update 2012

Forecast Statement of Cash Flows for the years ending 30 June

Forecast Statement of Cash Flows for the years ending 30 June
2011
Actual
$m 		2012
Previous
Budget
$m 		2012
Forecast
$m 		2013
Forecast
$m 		2014
Forecast
$m 		2015
Forecast
$m 		2016
Forecast
$m

Cash flows from operations

Cash was provided from

Taxation receipts 50,418 53,959 53,178 56,856 61,671 65,605 69,385
Other sovereign receipts 4,693 4,878 4,889 4,729 4,758 4,813 5,110
Sales of goods and services 14,899 16,046 16,284 16,369 16,873 17,829 18,475
Interest and dividend receipts 2,682 2,594 2,808 3,106 3,300 3,814 4,080
Other operating receipts 2,990 4,536 4,738 7,172 5,020 4,411 4,119
Total cash provided from operations 75,682 82,013 81,897 88,232 91,622 96,472 101,169

Cash was disbursed to

Transfer payments and subsidies 22,172 23,435 23,049 23,284 23,806 24,534 25,518
Personnel and operating payments 55,152 59,108 60,303 62,535 60,388 59,098 58,264
Interest payments 3,107 4,583 4,045 4,797 4,998 5,733 5,755
Forecast new operating spending -  463 87 348 1,141 2,370 3,567
Top-down expense adjustment -  (310) (450) (700) (150) (150) (150)
Total cash disbursed to operations 80,431 87,279 87,034 90,264 90,183 91,585 92,954
Net cash flows from operations (4,749) (5,266) (5,137) (2,032) 1,439 4,887 8,215

Cash flows from investing activities

Cash was provided from/(disbursed to)

Net purchase of physical assets (5,996) (7,852) (6,474) (7,039) (6,226) (5,760) (6,016)
Net purchase of shares and other securities (8,405) 5,831 (8,289) 7,480 (5,939) 3,852 (3,449)
Net purchase of intangible assets (600) (532) (547) (515) (399) (355) (331)
Net repayment/(issues) of advances (1,003) (2,039) (2,099) (1,840) (2,007) (2,061) (1,810)
Net acquisition of investments in associates 173 (137) 102 1,510 1,533 1,532 1,530
Forecast new capital spending -  (242) (88) (194) (571) (811) (850)
Balance sheet funding of new capital spending -  100 -  -  -  -  - 
Top-down capital adjustment -  170 250 100 -  -  - 
Net cash flows from investing activities (15,831) (4,701) (17,145) (498) (13,609) (3,603) (10,926)
Net cash flows from operating and investing activities (20,580) (9,967) (22,282) (2,530) (12,170) 1,284 (2,711)

Cash flows from financing activities

Cash was provided from/(disbursed to)

Issues of circulating currency 234 219 306 144 141 145 150
Net issue/(repayment) of Government stock1 21,088 4,774 22,386 3,921 9,354 (3,930) 2,536
Net issue/(repayment) of foreign-currency borrowings 1,809 (6,639) (8,774) (623) (679) (1,256) (1,120)
Net issue/(repayment) of other New Zealand dollar borrowings 81 11,390 13,410 (1,484) 2,997 2,895 917
Net cash flows from financing activities 23,212 9,744 27,328 1,958 11,813 (2,146) 2,483
Net movement in cash 2,632 (223) 5,046 (572) (357) (862) (228)
Opening cash balance 7,774 9,103 9,801 14,899 14,327 13,970 13,108
Foreign-exchange gains/(losses) on opening cash (605) 6 52 -  -  -  - 
Closing cash balance 9,801 8,886 14,899 14,327 13,970 13,108 12,880

1: Net issue of Government stock is after elimination of holdings by entities such as NZS Fund, ACC and EQC. Further information on the proceeds and repayments of Government stock ("domestic bonds") is available in note 22.

Forecast Statement of Cash Flows (continued) for the years ending 30 June
2011
Actual
$m 		2012
Previous
Budget
$m 		2012
Forecast
$m 		2013
Forecast
$m 		2014
Forecast
$m 		2015
Forecast
$m 		2016
Forecast
$m

Reconciliation between the net cash flows
from operations and the operating balance

Net cash flows from operations (4,749) (5,266) (5,137) (2,032) 1,439 4,887 8,215
Items included in the operating balance
but not in net cash flows from operations

Gains/(losses)

Net gains/(losses) on financial instruments 4,619 1,973 917 1,735 1,932 2,082 2,256
Net gains/(losses) on non-financial instruments 79 172 (3,371) 201 176 183 186
Total gains/(losses) 4,698 2,145 (2,454) 1,936 2,108 2,265 2,442

Other non-cash items in operating balance

Depreciation and amortisation (4,682) (4,631) (4,520) (4,687) (4,819) (4,915) (5,010)
Write-down on initial recognition of financial assets (807) (806) (855) (748) (771) (782) (810)
Impairment on financial assets (excl. receivables) 105 85 82 181 169 178 186
Decrease/(increase) in defined benefit retirement plan liabilities 358 377 483 405 362 321 295
Decrease/(increase) in insurance liabilities (13,179) 1,269 1,080 2,985 2,092 364 (909)
Other 238 307 253 262 272 273 270
Total other non-cash Items (17,967) (3,399) (3,477) (1,602) (2,695) (4,561) (5,978)

Movements in working capital

Increase/(decrease) in receivables 6,605 (1,081) (312) (3,767) (1,184) (243) (117)
Increase/(decrease) in accrued interest (599) 356 (111) 404 322 528 511
Increase/(decrease) in inventories 149 70 (7) 59 26 7 2
Increase/(decrease) in prepayments 39 (3) 25 (44) 43 (1) (1)
Decrease/(increase) in deferred revenue (46) 62 244 32 24 (1) (4)
Decrease/(increase) in payables/provisions (1,490) (177) 587 (685) 283 (146) (256)
Total movements in working capital 4,658 (773) 426 (4,001) (486) 144 135
Operating balance (13,360) (7,293) (10,642) (5,699) 366 2,735 4,814
Page top