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Half Year Economic and Fiscal Update 2015

Total Crown Balance Sheet

Increasing operating balance surpluses result in a stronger balance sheet...

Net worth attributable to the Crown is forecast to grow in nominal terms across the forecast period largely owing to forecast operating balance surpluses. Beyond 2016, net worth attributable to the Crown is expected to grow by $20.7 billion to stand at $107.2 billion by 2019/20, increasing as a share of nominal GDP to reach 36.2% by 2019/20 (Figure 2.16).

Figure 2.16 - Net worth attributable to the Crown
Figure 2.16 - Net worth attributable to the Crown   .
Source:  The Treasury

...with assets increasing by $35.3 billion over the forecast period...

Total assets are forecast to grow by $35.3 billion over the forecast period to $314.0 billion in 2019/20, made up of additional investments in assets (both physical and financial) of $70.1 billion, partially offset by reductions (largely depreciation) of $34.8 billion.

The largest asset growth over the forecast period is in the social assets portfolio (eg, schools, hospitals and social housing) which is expected to increase by $16.7 billion to be $155.9 billion in 2019/20 (Figure 2.17) over the forecast period. This growth reflects increases in future new capital spending, property, plant and equipment and student loans.

Figure 2.17 - Total Crown assets
Figure 2.17 - Total Crown assets   .
Source:  The Treasury

The financial asset portfolio is expected to increase by $10.8 billion to be $97.8 billion in 2019/20, reflecting investment growth in the large investment portfolios (NZS Fund and ACC), partly offset by a reduction in the Treasury’s New Zealand Debt Management Office (NZDMO) financial assets to help fund the expected cash shortfall.

The commercial asset portfolio is expected to increase by $7.8 billion over the forecast period to be $60.3 billion in 2019/20, with growth coming from SOEs' investment in physical assets and growth in Kiwibank mortgages.

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