The Treasury

Global Navigation

Personal tools

You are here: Home > Publications > Media Statements, Speeches and Guest Lectures > Media Statements > Financial Statements of the Government of New Zealand for the Eleven Months Ended 31 May 2009 (3 July 2009)

 

Media StatementFinancial Statements of the Government of New Zealand for the Eleven Months Ended 31 May 2009

3 Jul 2009

Dr Peter Bushnell
Deputy Secretary to the Treasury

The Financial Statements of the Government of New Zealand for the Eleven Months Ended 31 May 2009 were released by the Treasury today.

The monthly financial statements are compared against monthly forecast tracks based on the 2009 Budget Economic and Fiscal Update.

Results for the eleven months ended 31 May 2009

  • Tax revenue was on forecast, but corporate tax receipts were $0.4 billion lower than forecast.  This was mainly due to lower-than-forecast provisional tax payments, indicating business profitability in the current year is weaker than expected.
  • We are not seeing any significant benefit payment variances at this stage and overall Core Crown expenditure was $0.4 billion lower than forecast.
  • The Operating Balance Before Gains and Losses (OBEGAL) was a deficit of $1.2 billion ($0.4 billion lower than the forecast $1.6 billion deficit) due mainly to the core Crown expenditure variance mentioned above.
  • The operating balance was a deficit of $7.2 billion ($1.2 billion lower than the forecast $8.4 billion deficit).  This variance was mainly due to:
    • The NZS Fund and ACC have reported higher-than-forecast investment gains of $1.2 billion and $0.5 billion (respectively) in April and May and although they remain in a loss position for the year-to-date, their recent results contributed to the favourable operating balance variance as at 31 May.
    • The investment gains were partly offset by $0.7 billion of negative valuation movements in financial assets and financial liabilities held by the Reserve Bank and NZ Debt Management Office (NZDMO).
  • The residual cash deficit was $1.0 billion lower than forecast due mainly to a delayed IMF Reserve transaction payment and funding returned from the NZ Fast Forward Fund earlier than expected.
  • Net debt1 was close to forecast as negative valuation movements in financial assets and financial liabilities held by the Reserve Bank and NZDMO were partially offset by a lower-than-expected residual cash deficit.
1  Net core Crown debt excluding NZS Fund, student loans and other advances.
Year to date Full Year
$ million May
2009
Actual[2]
May 2009
BEFU
Forecast[2]
Variance
to BEFU
$m
Variance
to BEFU
%
June 2009
BEFU
Forecast[3]
Core Crown
Core Crown revenue (excl. NZS Fund)[1] 53,768 53,799 (31) (0.1) 58,392
Core Crown expenses 55,368 55,855 487 0.9 62,363
NZS Fund operating balance (2,817) (3,339) 552 (15.6) (3,260)
Core Crown residual cash (7,135) (8,180) 1,045 12.8 (8,458)
Gross debt[4] 41,042 42,629 1,586 3.7 44,217
as a percentage of GDP 22.8% 23.7%     24.8%
Net debt[5] 15,687 15,140 (547) (3.6) 15,482
as a percentage of GDP 8.7% 8.4% 8.7%
Net debt (incl. NZS Fund)[5] 3,874 2,581 (1,293) 50.1 3,814
as a percentage of GDP 2.2 % 1.4 %     2.1 %
Total Crown
OBEGAL (1,209) (1,641) 432 (26.3) (2,916)
Net gains/(losses) and other items (5,952) (6,690) 738 (6,387)
Operating balance (7,161) (8,331) 1,170 (14.0) (9,303)
  1. For the purposes of this indicator, the NZS Fund is treated as a third party (i.e. its revenue is not included but the tax it pays is).
  2. Using GDP for the year ended 31 March 2009 of $179,912 million (Source: Statistics New Zealand).
  3. Using forecast GDP for the year ended 30 June 2009 of $178,523 million (Source: Treasury).
  4. Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
  5. Net core Crown debt less student loans and other advances.

ENDS

Officer for Enquiries

Kamlesh Patel | Macroeconomic Group
Tel: +64 4 917 6094
Fax: +64 4 471 5956
Email: kamlesh.patel@treasury.govt.nz
    Page top