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 Three Months Ended 30 September 2009 (4 November 2009)

 

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)
  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 30 June 2009 of $180,210 million (Source: Statistics New Zealand).
  3. Using forecast GDP for the year ended 30 June 2010 of $175,051 million (Source: Treasury).
  4. Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
  5. Net core Crown debt excluding 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