The Treasury

Global Navigation

Personal tools

Treasury
Publication

Half Year Economic and Fiscal Update 2014

Net Core Crown Debt

Net core Crown debt peaks as a share of GDP in 2014/15...

Net core Crown debt as a share of GDP peaks at 26.5% in 2014/15 and stays flat in 2015/16 (Figure 2.15) before reducing to 22.5% by 2018/19.

As residual cash returns to surplus, net core Crown debt is repaid.

Figure 2.15 - Net core Crown debt
Figure 2.15 - Net core Crown debt   .
Source:  The Treasury
Figure 2.16 - Gross debt
Figure 2.16 - Gross debt   .
Source:  The Treasury

...and gross debt begins to decline after 2016/17

The bond programme to 2018/19 is expected to raise funds of $36.4 billion over the forecast period, while $34.8 billion of existing debt will be repaid, providing net cash proceeds of $1.6 billion (Table 2.9). Any excess cash proceeds raised from the bond programme will be invested in financial assets and used to meet future debt maturities.

Table 2.9 - Net increase in government bonds
Year ending 30 June
$billions
2015
Forecast
2016
Forecast
2017
Forecast
2018
Forecast
2019
Forecast
5-year
Total
Face value of government bonds issued (market) 8.0 7.0 7.0 7.0 7.0 36.0
Cash proceeds from government bond issue
Cash proceeds from issue of market bonds 8.1 7.2 7.2 7.0 6.9 36.4
Repayment of market bonds (8.7) (1.8) - (11.3) (11.5) (33.3)
Net proceeds from market bonds (0.6) 5.4 7.2 (4.3) (4.6) 3.1 
Repayment of non-market bonds (0.8) (0.7) (1.5)
Net repayment of non-market bonds (0.8) (0.7) (1.5)
Net cash proceeds from bond issuance (1.4) 4.7 7.2 (4.3) (4.6) 1.6

Source: The Treasury

Page top