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Budget 2007 Home Page Half Year Economic & Fiscal Update 2007

Notes to the Forecast Financial Statements

NOTE 2: Interest Revenue and Dividends
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
By type              
Interest revenue 2,540 2,865 3,201 3,328 3,245 3,422 3,440
Dividends 444 501 515 611 706 802 905
Total Interest Revenue and Dividends 2,984 3,366 3,716 3,939 3,951 4,224 4,345
By source              
NZ Superannuation Fund 396 425 504 611 725 849 981
Other core Crown 2,184 2,162 2,486 2,848 2,725 2,890 3,017
Crown entities 746 880 920 952 999 1,043 1,099
State-owned enterprises 484 481 493 236 266 264 272
Inter-segment eliminations (826) (582) (687) (708) (764) (822) (1,024)
Total Interest Revenue and Dividends 2,984 3,366 3,716 3,939 3,951 4,224 4,345

 

NOTE 3: Social Assistance and Official Development Assistance
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
New Zealand superannuation 6,810 7,292 7,343 7,719 8,178 8,712 9,378
Domestic purposes benefit 1,468 1,456 1,466 1,482 1,508 1,537 1,575
Unemployment benefit 613 497 458 437 449 450 471
Invalids benefit 1,132 1,201 1,195 1,250 1,306 1,357 1,406
Family support 1,699 1,964 2,023 1,934 1,930 2,032 2,016
Accommodation supplement 877 909 885 906 927 946 972
Sickness benefit 573 608 600 607 610 608 608
Student allowances 382 402 397 409 417 424 430
Disability allowances 270 279 279 290 303 315 330
KiwiSaver -  501 834 981 1,155 1,290 1,440
Other social assistance benefits 2,192 2,382 2,460 2,482 2,331 2,443 2,518
Total Social assistance 16,016 17,491 17,939 18,496 19,114 20,114 21,143
Official development assistance 330 401 413 427 493 563 563
Total Social Assistance and Official Development Assistance 16,346 17,892 18,352 18,923 19,607 20,677 21,706

ACC payments are now classified as insurance expenses under NZ IFRS (refer note 7).

NOTE 4: Personnel Expenses
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
Core Crown 5,113 5,434 5,579 5,558 5,476 5,528 5,542
Crown entities 8,160 8,213 8,579 8,646 8,774 8,760 8,769
State-owned enterprises 2,012 2,011 2,117 2,194 2,259 2,317 2,371
Inter-segment eliminations (4) (1) (4) (4) (4) (5) (5)
Total Personnel Expenses 15,281 15,657 16,271 16,394 16,505 16,600 16,677
NOTE 5: Operating Expenses
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
Core Crown 30,079 30,102 30,847 31,441 31,500 31,733 32,092
Crown entities 13,480 15,291 14,396 14,285 14,188 14,326 14,382
State-owned enterprises 8,283 9,180 9,012 9,704 10,248 10,568 10,871
Inter-segment eliminations (20,987) (22,280) (22,131) (22,260) (22,253) (22,209) (22,287)
Total operating expenses 30,855 32,293 32,124 33,170 33,683 34,418 35,058

 

NOTE 6:  Interest Expenses
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
By type              
Interest on financial liabilities 2,876 2,335 3,125 2,717 2,646 2,814 2,796
Interest unwind on provisions 17 413 130 125 122 128 177
Total interest expenses 2,893 2,748 3,255 2,842 2,768 2,942 2,973
By source              
Core Crown 2,330 2,245 2,804 2,723 2,646 2,825 2,807
Crown entities 274 306 296 303 302 296 308
State-owned Enterprises 685 704 724 422 449 472 529
Inter-segment eliminations (396) (507) (569) (606) (629) (651) (671)
Total interest expenses 2,893 2,748 3,255 2,842 2,768 2,942 2,973
NOTE 7:  Insurance Expenses
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
By type              
ACC payments 1,967 2,016 2,216 2,447 2,593 2,771 2,966
Other insurance expenses 1,746 994 1,365 1,395 1,499 1,562 1,606
Total insurance expenses 3,713 3,010 3,581 3,842 4,092 4,333 4,572
NOTE 8:  Forecast New Operating Spending
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
New operating spending up to Budget 2008 -  314 201 240 340 397 397
Forecast for future new spending -  -  -  1,817 3,675 5,559 7,529
Total forecast new operating spending -  314 201 2,057 4,015 5,956 7,926
Top-down expense adjustment -  -  (750) (275) (250) (200) (150)

New operating spending up to Budget 2008 represents expenses included in Budget 2007 that have yet to be allocated.

Forecast new operating spending indicates in broad terms the potential spending increases that could be introduced in each future remaining budget round. As some of this spending has already been allocated to the Defence funding package, this line represents the unallocated portion. Total potential spending increases included in the forecasts are $2 billion for the next four Budgets.

NOTE 9:  Gains and losses on financial instruments
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
By source              
Core Crown 1,180 1,155 1,424 1,188 1,324 1,533 1,687
Crown entities 369 485 633 558 544 592 640
State-owned enterprises 62 18 75 (52) (62) (73) (71)
Inter-segment eliminations (42) (281) (259) (263) (267) (271) (272)
Net gains/(losses) on financial instruments 1,569 1,377 1,873 1,431 1,539 1,781 1,984
NOTE 10: Source of Operating Balance
  2007 2008 2008 2009 2010 2011 2012
  Actual Previous
Budget 		Forecast Forecast Forecast Forecast Forecast
  $m $m $m $m $m $m $m
Core Crown 6,498 4,464 6,206 4,166 4,089 4,395 4,489
Crown entities 1,006 1,242 580 1,135 968 938 901
State-owned enterprises 821 1,068 986 1,125 1,251 1,173 1,368
Inter-segment eliminations (326) (343) (384) (373) (384) (412) (530)
Total Operating Balance 7,999 6,431 7,388 6,053 5,924 6,094 6,228

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