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Media StatementFinancial Statements of the Government of New Zealand for the Nine Months Ended 31 March 2008

5 May 2008

Dr Peter Bushnell
Deputy Secretary to the Treasury

The Financial Statements of the Government of New Zealand for the nine months ended 31 March 2008 were released by the Treasury today.

The monthly financial statements are compared against monthly forecast tracks based on the 2007 Half Year Budget Economic and Fiscal Update.

Results for the nine months ended 31 March 2008

  • The OBEGAL at $4.6 billion was $200 million lower than forecast.
  • Core Crown tax revenue, receipts, expenditure and residual cash were also largely on track.
  • The operating balance including gains and losses was $4.0 billion lower than forecast, primarily driven by losses from the Crown Financial Institutions’ (CFIs) investment portfolios and revaluation of long-term liabilities (ACC claims liabilities, pension commitments and provisions like Kyoto), offset by gains on other financial instruments.
  • Losses on the CFIs investment portfolios were due to continuing declines in equity markets.  Equity markets can be volatile in the short term.

 

Year to date

Net gains / (losses) March 2008 Actual March 2008 Forecast Variance $m
$ million      
CFIs Investment Portfolios      
NZS Fund (1,096) 614 (1,710)
ACC (603) 407 (1,010)
EQC (178) 156 (334)
  (1,877) 1,177 (3,054)
Long-term liabilities [1] (2,315) (1,176) (1,139)
Other financial instruments [2] 692 328 364
Total net gains / (losses) (3,500) 329 (3,829)

1  These losses mainly relate to revaluation of the ACC claims liability, the GSF pension liability and the Kyoto provision.

2  These net gains relate to RBNZ, the Debt Management Office and other entities.

 

Year to date

Full Year
March
2008
Actual
March
2008
Forecast
Variance
$m
Variance
%
HYEFU
June 2008
Forecast
$ million  
Core Crown  
Core Crown revenue (excl. NZS Fund) [1] 44,886 45,409 (523) (1.2) 62,130
Core Crown expenses 41,692 41,974 282 0.7 57,137
NZS Fund operating balance (1,106) 692 (1,798) (259.8) 917
Core Crown residual cash 2,096 1,677 419 25.0 759
GSID (excl. settlement cash) 32,006 32,181 175 0.5 33,303
   as a percentage of GDP [2] 18.3% 18.4% 18.7%
Net Core Crown debt 594 1,439 845 58.7 1,983
   as a percentage of GDP [2] 0.3% 0.8% 1.1%
Net Core Crown debt (incl. NZS Fund) (11,644) (12,257) (613) 5.0 (13,102)
   as a percentage of GDP [2] (6.7)% (7.0)% (7.4)%
Total Crown          
OBEGAL 4,631 4,802 (171) (3.6) 6,574
Net gains / (losses) (3,500) 329 (3,829) 814
Operating Balance (1,131) 5,131 (4,000) (78.0) 7,388

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  GDP for the year ended 31 December 2007 of $174,647 million (Source: Statistics New Zealand).

ENDS

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Warwick White | Macroeconomic Group
Tel: +64 4 917 6003
Fax: +64 4 471 5956
Email: warwick.white@treasury.govt.nz
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