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Balance sheet management

Balance sheet management refers to a number of actions, including:

  • managing the assets and liabilities that make it up, including making decisions about what assets to buy or sell or liabilities to incur or retire
  • managing Crown finances appropriately through fiscal policy settings, using Crown debt to help manage the impact of economic cycles and/or to bring forward or defer spending
  • managing off-balance sheet assets and liabilities, including the impacts of policies on future balance sheets and contingent or implicit liabilities, and
  • utilising the balance sheet to meet public policy objectives, such as saving now to meet future expenses or vice versa.

Effective balance sheet management requires an overarching strategy that brings together these actions in a cohesive manner. The use of specific performance targets can bring further discipline to this process.

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