Fiscal Indicator Analysis - Debt

as at 30 June 2009

Debt
Forecast			Actual
Original Budget $m	Estimated Actuals $m		30 June 2009 $m	30 June 2008 $m
		Gross and net debt analysis:
48,656	69,156	Total borrowings	61,953	46,110
		Net debt:
37,640	57,329	Core Crown borrowings[1]	50,545	37,336
768	(528)	Add back NZS Fund holdings of sovereign-issued debt and NZS Fund borrowings	428	409
38,408	56,801	Gross sovereign-issued debt[2]	50,973	37,745
49,745	64,163	Less core Crown financial assets[3]	55,769	50,698
(11,337)	(7,362)	Net core Crown debt (incl NZS Fund)[4]	(4,796)	(12,953)
15,915	11,668	Add back NZS Fund holdings of core Crown financial assets and NZS Fund financial assets[5]	11,486	12,934
4,578	4,306	Net core Crown debt (excl NZS Fund)[4]	6,690	(19)
11,797	11,176	Advances	10,429	10,277
16,375	15,482	Net core Crown debt (excl NZS Fund and advances)[6]	17,119	10,258
		Gross debt:
38,408	56,801	Gross sovereign-issued debt[2]	50,973	37,745
(7,510)	(14,184)	Less Reserve Bank settlement cash and bank bills	(9,217)	(7,955)
1,600	1,600	Add back changes to DMO borrowing due to settlement cash[7]	1,600	1,600
32,498	44,217	Gross sovereign-issued debt excluding settlement cash and bank bills	43,356	31,390

Notes on Gross and net debt analysis:

Core Crown borrowings in this instance includes unsettled purchases of securities (classified as accounts payable in the statement of financial position).
Gross Sovereign-Issued Debt (GSID) represents debt issued by the sovereign (the core Crown) and includes Government stock held by the New Zealand Superannuation Fund (NZS Fund), ACC and EQC.
Core Crown financial assets exclude receivables.
Net Core Crown Debt represents GSID less financial assets. This can provide information about the sustainability of the Government's accounts, and is used by some international agencies when determining the credit-worthiness of a country.
Adding back the NZS Fund assets provides the financial liabilities less financial assets of the Core Crown, excluding those assets set aside to meet part of the future cost of New Zealand superannuation.
Net Core Crown Debt (excluding NZS Fund and advances) excludes financial assets which are held for public policy rather than treasury management purposes.
The Reserve Bank has used $1.6 billion of settlement cash to purchase reserves that were to have been funded by the NZ Debt Management Office borrowing. Therefore, the impact of settlement cash on GSID is adjusted by this amount.

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