Analysis of Key Components of the Statement of Financial Position
(as at 30 June 2007)
Following is an analysis of the New Zealand Superannuation (NZS) Fund and Gross and Net Debt information.
The notes to the financial statements provide a breakdown of other key balance sheet items.
New Zealand Superannuation Fund (NZS Fund)
Within marketable securities, deposits and equity investments is the NZS Fund (except for cross holdings of investments with other parts of the Crown, for example the NZS Fund may hold NZ Government Stock). The following information includes all investments and income, including cross-holdings of NZ Government Stock and accrued interest on such stock.
| Forecast | Actual | |||
|---|---|---|---|---|
| Original Budget | Estimated Actual | 30 June 2007 | 30 June 2006 | |
| $m | $m | $m | $m | |
| 10,015 | 9,861 | Opening balance | 9,861 | 6,555 |
| 2,049 | 2,049 | Gross contribution | 2,049 | 2,337 |
| 675 | 1,008 | Income after tax | 1,079 | 969 |
| 12,739 | 12,918 | NZS Fund Balance | 12,989 | 9,861 |
Gross and Net Debt information
Definitions of debt:
Total Crown gross debt is the total borrowings (both sovereign guaranteed and non-sovereign guaranteed) of the total Crown. This equates to the amount in the total Crown balance sheet and represents the complete picture of whole-of-Crown debt obligations to external parties (ie, after eliminations of internal cross-holdings).
The balance sheet splits total Crown debt into sovereign-guaranteed and non-sovereign-guaranteed debt. This split reflects the fact that debt held by SOEs and Crown entities is not explicitly guaranteed by the Crown. Any such debt that may be guaranteed is included in the sovereign-guaranteed total. No debt of SOEs and Crown entities is currently guaranteed by the Crown.
Gross sovereign-issued debt is debt issued by the sovereign (ie, core Crown) and includes Government stock held by the NZS Fund, GSF, ACC or EQC for example. In other words, the gross sovereign-issued debt indicator does not eliminate any internal cross-holdings of entities listed above. The Government's debt objective uses this measure of debt.
Net core Crown debt is borrowings (financial liabilities) less cash and bank balances, marketable securities and deposits, and advances (financial assets). Net core Crown debt excludes the assets of the NZS Fund and GSF because they are restricted in their use. It is a measure of the core Crown.
| Forecast | Actual | |||
|---|---|---|---|---|
| Original Budget | Estimated Actual | 30 June 2007 | 30 June 2006 | |
| $m | $m | $m | $m | |
| 38,388 | 42,367 | Total Crown Gross Debt | 41,385 | 39,427 |
| 33,356 | 35,876 | Core Crown sovereign guaranteed borrowings | 35,450 | 34,477 |
| 1,657 | 1,341 | Add back cross holdings of NZS Fund and GSF | 700 | 984 |
| 35,013 | 37,217 | Gross Sovereign-Issued Debt | 36,150 | 35,461 |
| 41,028 | 48,192 | Core Crown financial assets | 49,036 | 40,599 |
| 15,224 | 15,587 | Excluding NZS Fund and GSF financial assets | 16,319 | 12,883 |
| 25,804 | 32,605 | Financial assets excluding NZS Fund and GSF | 32,717 | 27,716 |
| 35,013 | 37,217 | Gross Sovereign-Issued Debt | 36,150 | 35,461 |
| 25,804 | 32,605 | Financial assets excluding NZS Fund and GSF | 32,717 | 27,716 |
| 9,209 | 4,612 | Net core Crown Debt | 3,433 | 7,745 |
The accompanying notes and accounting policies are an integral part of these statements.
