Media StatementFinancial Statements of the Government of New Zealand for the Three Months Ended 30 September 2009
4 Nov 2009
Dr Peter Bushnell
Deputy Secretary to the Treasury
The Financial Statements of the Government of New Zealand for the three months ended 30 September 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 three months ended 30 September 2009
- Core Crown tax revenue at $11.9 billion was $1.1 billion lower than forecast. This follows on from the trend reported in the June 2009 annual financial statements. The majority of this variance was in relation to corporate tax revenue which was $0.9 billion under forecast. Lower-than-expected 2009 tax year profits coupled with assumptions that changes to provisional tax due dates would have on tax seasonal patterns that did not eventuate make up the bulk of this variance. A clearer picture of the implications for 2010 is likely to emerge after the end of October, by which time any seasonal volatility is expected to have settled down.
- This lower tax revenue was the main contributor to an operating balance before gains and losses deficit of $2.0 billion ($0.9 billion larger than the $1.1 billion deficit forecast).
- Higher-than-forecast investment returns reported by the NZS Fund and ACC ($1.4 billion and $0.7 billion respectively) offset the tax result meaning the operating balance deficit was slightly better than forecast at $0.2 billion ($0.4 billion lower than the forecast deficit of $0.6 billion).
- Gross debt at $48.5 billion was $1.4 billion higher than forecast (with a corresponding increase in financial assets) due to an increase in IMF reserve liabilities.
- Other key indicators were largely on target.
| Year to date | Full Year | ||||
|---|---|---|---|---|---|
| $ million | September 2009 Actual[2] |
September 2009 BEFU Forecast[2] |
Variance to BEFU $m |
Variance to BEFU % |
June 2010 BEFU Forecast[3] |
| Core Crown | |||||
| Core Crown revenue (excl. NZS Fund)[1] | 13,236 | 14,090 | (854) | (6.1) | 56,374 |
| Core Crown expenses | 15,473 | 15,537 | 64 | 0.4 | 65,282 |
| NZS Fund operating balance | 1,253 | 253 | 1,000 | 395.3 | 1,065 |
| Core Crown residual cash | (3,292) | (3,610) | 318 | 8.8 | (11,865) |
| Gross debt[4] | 48,500 | 47,095 | (1,405) | (3.0) | 50,973 |
| as a percentage of GDP | 26.9% | 26.1% | 29.1% | ||
| Net debt[5] | 21,253 | 20,886 | (367) | (1.8) | 15,348 |
| as a percentage of GDP | 11.8% | 11.6% | 8.8% | ||
| Total Crown | |||||
| OBEGAL | (2,022) | (1,145) | (877) | (76.6) | (7,739) |
| Net gains/(losses) and other items | 1,847 | 547 | 1,300 | 237.7 | 2,010 |
| Operating balance | (175) | (598) | 423 | 70.7 | (5,729) |
- 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).
- Using GDP for the year ended 30 June 2009 of $180,210 million (Source: Statistics New Zealand).
- Using forecast GDP for the year ended 30 June 2010 of $175,051 million (Source: Treasury).
- Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
- Net core Crown debt excluding student loans and other advances.
Officer for Enquiries
Kamlesh Patel | Macroeconomic GroupTel: +64 4 917 6094
Fax: +64 4 471 5956
Email: kamlesh.patel@treasury.govt.nz
