Fiscal Indicator Analysis - Debt
as at 30 June 2011
|
Forecast 30 June 2011 |
Actual | |||
|---|---|---|---|---|
|
Budget 10 $m |
Budget 11 $m |
30 June 2011 $m |
30 June 2010 $m |
|
Gross and net debt analysis: |
||||
| 89,416 | 91,003 | Total borrowings | 90,245 | 69,733 |
Net debt: |
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| 73,196 | 76,945 | Core Crown borrowings1 | 76,885 | 58,583 |
| (31) | (167) | Add back NZS Fund holdings of sovereign-issued debt and NZS Fund borrowings | 405 | 308 |
| 73,165 | 76,778 | Gross sovereign-issued debt2 | 77,290 | 58,891 |
| 61,317 | 65,089 | Less core Crown financial assets3 | 65,400 | 57,209 |
| 11,848 | 11,689 | Net core Crown debt (including NZS Fund)4 | 11,890 | 1,682 |
| 16,575 | 17,854 | Add back NZS Fund holdings of core Crown financial assets and NZS Fund financial assets5 | 16,159 | 14,189 |
| 28,423 | 29,543 | Net core Crown debt (excluding NZS Fund)4 | 28,049 | 15,871 |
| 11,542 | 11,959 | Advances | 12,079 | 10,867 |
| 39,965 | 41,502 | Net core Crown debt (excluding NZS Fund and advances)6 | 40,128 | 26,738 |
Gross debt: |
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| 73,165 | 76,778 | Gross sovereign-issued debt2 | 77,290 | 58,891 |
| (7,796) | (6,800) | Less Reserve Bank settlement cash and bank bills | (6,470) | (6,900) |
| 1,600 | 1,600 | Add back changes to DMO borrowing due to settlement cash7 | 1,600 | 1,600 |
| 66,969 | 71,578 | Gross sovereign-issued debt excluding settlement cash and bank bills | 72,420 | 53,591 |
1. Core Crown borrowings in this instance includes unsettled purchases of securities (classified as accounts payable in the statement of financial position).
2. 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.
3. Core Crown financial assets exclude receivables.
4. 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 creditworthiness of a country.
5. 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.
6. Net core Crown debt (excluding NZS Fund and advances) excludes financial assets which are held for public policy rather than treasury management purposes.
7. 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.
