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Fiscal Indicator Analysis - Debt
as at 30 June 2017

2017 Forecast Actual
Budget
2016
$m
Budget
2017
$m
30 June
2017
$m
30 June
2016
$m

Gross and net core Crown debt analysis:

 
121,698 114,592 Total borrowings 111,806 113,956

Net core Crown debt:

 
102,812 97,118 Core Crown borrowings1 94,107 95,037
(1,651) (1,894) Add back NZS Fund holdings of sovereign-issued debt and NZS Fund borrowings (1,487) (1,754)
101,161 95,224 Gross sovereign-issued debt2 92,620 93,283
80,236 78,946 Less core Crown financial assets3 81,015 75,793
20,925 16,278 Net core Crown debt (including NZS Fund)4 11,605 17,490
30,837 33,828 Add back NZS Fund holdings of core Crown financial assets and NZS Fund financial assets5 35,861 29,778
51,762 50,106 Net core Crown debt (excluding NZS Fund)4 47,466 47,268
14,572 12,171 Advances 12,014 14,612
66,334 62,277 Net core Crown debt (excluding NZS Fund and advances)6 59,480 61,880
25.6% 23.2% As a percentage of GDP 22.2% 24.4%

Gross debt:

 
101,161 95,224 Gross sovereign-issued debt2 92,620 93,283
(8,881) (8,179) Less Reserve Bank settlement cash and bank bills (7,079) (7,955)
1,600 1,600 Add back changes to DMO borrowing due to settlement cash7 1,600 1,600
93,880 88,645 Gross sovereign-issued debt excluding settlement cash and bank bills 87,141 86,928
36.2% 33.0% As a percentage of GDP 32.5% 34.3%
  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 Government borrowing. Therefore, the impact of settlement cash on GSID is adjusted by this amount.
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