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Fiscal Indicator Analysis - Debt
as at 30 June 2014

Forecast Actual
Budget 2013
$m
Budget 2014
$m
30 June 2014
$m
30 June 2013
$m

Gross and net debt analysis:

 
112,201 103,058 Total borrowings 103,419 100,087

Net debt:

 
94,504 88,442 Core Crown borrowings[34] 89,090 84,873
(1,027) (640) Add back NZS Fund holdings of sovereign-issued debt and  NZS Fund borrowings (622) (587)
93,477 87,802 Gross sovereign-issued debt [35] 88,468 84,286
65,786 66,764 Less core Crown financial assets[36] 68,047 62,984
27,691 21,038 Net core Crown debt (including NZS Fund) [37] 20,421 21,302
22,700 24,598 Add back NZS Fund holdings of core Crown financial assets and  NZS Fund financial assets[38] 25,757 21,407
50,391 45,636 Net core Crown debt (excluding NZS Fund)37 46,178 42,709
14,374 13,785 Advances 13,753 13,126
64,765 59,421 Net core Crown debt (excluding NZS Fund and advances) [39] 59,931 55,835
28.4% 25.8% As a percentage of GDP 26.2% 26.3%

Gross debt:

 
93,477 87,802 Gross sovereign-issued debt[35] 88,468 84,286
(7,391) (7,245) Less Reserve Bank settlement cash and bank bills (8,112) (7,902)
1,600 1,600 Add back changes to DMO borrowing due to settlement cash[40] 1,600 1,600
87,686 82,157 Gross sovereign-issued debt excluding settlement cash   and bank bills 81,956 77,984
38.5% 35.6% As a percentage of GDP 35.8% 36.7%

Notes

  • [34]Core Crown borrowings in this instance includes unsettled purchases of securities (classified as accounts payable in the statement of financial position).
  • [35]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.
  • [36]Core Crown financial assets exclude receivables.
  • [37]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.
  • [38]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.
  • [39]Net core Crown Debt (excluding NZS Fund and advances) excludes financial assets which are held for public policy rather than treasury management purposes.
  • [40]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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