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The 2016 Snapshot [of the Financial Statements of the Government] (Part 1)

The economy

Real gross domestic product growth annual average rate was 2.8% mainly due to robust growth in construction, household consumption and tourism.

In current dollar terms, the value of output increased 4.2% in the June 2016 year, up from 2.8% growth in the previous June year.

Annual average % change in GDP

Annual average % change in GDP.

Facts and figures – June year (compared to 2015)

  • $251.8 billion nominal GDP (↑ $10.2b)
  • $227.2 billion real GDP (↑ $6.1b)
  • 1,484,000 average full time equivalent employees (↑ 40,175)
  • $29.62 average ordinary time hourly rate (↑ 2.1%)
  • 5.2% average unemployment (↓ 0.2%)
  • 0.3% annual average inflation (↓ 0.3%)

Where does the Government's money come from?

Total revenue: $98.2b (39.0% of GDP)

Total revenue: $98.2b (39.0% of GDP).
  • 71% of revenue was from collection of tax (↑ $3.6b)
  • 83% of sales of goods & services are from SOEs (eg, NZ Post and listed companies)
  • 12% of total revenue was from other sources (eg, ACC, EQC, interest and fire service levies)

Core Crown tax revenue

  • $70.4 billion (↑ $3.8b)
  • 28.0% of GDP

Who pays income tax, and how much?

Who pays income tax, and how much?.

Next March tax year 3.6 million New Zealanders are expected to pay individuals tax of $31.2 billion – an average of $8,667 each

How was the money spent?

Total expenses: $95.9b (38.1% of GDP)

Total expenses: $95.9b (38.1% of GDP).
  • $73.9 billion core Crown expenses (↑ $1.6b)
  • 23% of all spending was by SOEs and Crown Entities

$52.9 billion was spent on welfare, health, education

Social welfare

$12.3 billion to provide 690,600 superannuitants with income support and $4.3 billion to 295,000 people receiving Jobseeker Support and Emergency Benefit, Sole Parent Support and Supported Living Payment.

Health

$11.8 billion of funding to District Health Boards, which contributed to services to meet the needs of each district’s population. The health and disability system provided over 13.2 million visits to GPs and over 1.1 million presentations to emergency departments.

Education

$13.2 billion helped to fund 96.6% participation in early childhood education, 83.3% of 18 year olds to achieve NCEA Level 2 or equivalent and 358,000 tertiary students.

OBEGAL surplus continued to grow

Operating balance before gains and losses (OBEGAL)

Operating balance before gains and losses (OBEGAL).
  • $1.8 billion surplus (↑ $1.4b)
  • Growth in tax revenue has outpaced growth in expenditure
  • Core Crown tax revenue was $3.8 billion more than last year
  • Core Crown expenses increased $1.6 billion from last year

Operating balance(after gains and losses)

Operating balance(after gains and losses).
  • Gains and losses can be volatile
  • Net losses for the year were $7.2 billion (↑ $12.6b)
  • Valuations of long term liabilities resulted in large losses for the ACC insurance liability and the
  • Government Superannuation Fund retirement liability
  • These losses combined with the OBEGAL surplus resulted in a $5.4 billion operating balance deficit (↑ $11.2b)
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