Ministerial Statement
Over the past six years the New Zealand economy has performed strongly. Together with careful fiscal management this has resulted in a steady strengthening of the fiscal position. Operating surpluses have continued and gross and net debt levels have reduced. This has been our goal.
The financial statements for the year ended 30 June 2005 show an operating balance surplus result of $6.2 billion and a net worth of $50.0 billion.
The OBERAC (operating balance excluding revaluations and accounting policy changes) was $8.9 billion compared with $6.6 billion last year. Both net worth and the OBERAC have improved from last year reflecting continued economic growth.
The OBERAC surplus was sufficient to fund capital needs and set aside $2.1 billion for the New Zealand Superannuation Fund.
Gross sovereign-issued debt has tracked down to 23.5% (25.3% 30 June 2004), which is consistent with the Government’s long-term fiscal objective of gross debt as a percentage of GDP slowly reducing over the longer term and passing through 20% of GDP by 2015.
The government’s objective is to manage the Crown’s overall finances in a prudent and responsible manner. It will continue with the overall fiscal strategy of maintaining a cautious fiscal stance with sufficient headroom to provide a buffer against forecast changes or unanticipated events.
Hon Dr Michael Cullen
Minister of Finance
16 September 2005
