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Media Statement
Financial Statements of the Government of New Zealand for the Ten Months Ended 30 April 2012

6 Jun 2012

Fergus Welsh
Chief Financial Officer
The Treasury

The Financial Statements of the Government of New Zealand for the Ten Months Ended 30 April 2012 were released by the Treasury today.

The monthly financial statements are compared against monthly forecast tracks based on the 2012 Budget Economic and Fiscal Update (Budget) published last month.

In the ten month period to 30 April, core Crown tax revenue of $45.1 billion was $772 million or 1.7% higher than forecast:

  • Corporate tax was $452 million (7.0%) above forecast with 2011 terminal tax assessments and Portfolio Investment Entity (PIE) tax each approximately $200 million above forecast.  There was stronger volume growth in PIE tax than forecast, particularly for KiwiSaver funds and strong investment returns in the March 2012 quarter. 
  • Goods and Services Tax (GST) was $313 million (2.7%) above forecast, mainly as a result of smaller-than-expected GST refunds. 

For the same period, core Crown expenditure of $56.1 billion was $323 million or 0.6% lower than forecast.

The operating balance before gains and losses (OBEGAL) deficit for the ten months to 30 April was $1.4 billion (19.2%) lower than forecast at $5.9 billion, largely as a result of the higher-than-expected tax and lower-than-expected core Crown expenses.  In addition, better than expected results across State-owned enterprises and Crown entities contributed approximately $300 million to the lower-than-expected deficit.

At 30 April, net debt stood at $52.0 billion (25.9% of GDP) and gross debt stood at $78.1 billion (38.8% of GDP).


Year to date Full Year
$ million April
2012
Actual1
April
2012
BEFU
Forecast1
Variance
to BEFU
$m
Variance
to BEFU
%
June
2012
BEFU
Forecast2
Core Crown




Core Crown tax revenue 45,092 44,320 772 1.7 54,741
Core Crown revenue
49,320 48,566 754 1.6 60,031
Core Crown expenses 56,132 56,455 323  0.6 69,633
Core Crown residual cash (12,124) (12,710) 586  4.6 (12,119)
Gross debt3 78,054 77,274 (780)  (1.0) 80,142
as a percentage of GDP 38.8% 38.4%     38.5%
Net debt4 52,031 52,626 595  1.1 51,921
as a percentage of GDP 25.9% 26.2%     25.0%
Total Crown          
Operating balance before gains and losses (5,942) (7,358) 1,416 19.2 (8,441)
Operating balance (8,999) (10,532) 1,533 14.6 (10,642)
Net worth 71,942 70,408 1,534 2.2 70,303

1 Using GDP for the year ended 31 December 2011 of $201,086 million (Source: Statistics New Zealand)
2 Using forecast GDP for the year ended 30 June 2012 of $207,987 million (Source: The Treasury)
3 Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills
4 Net core Crown debt excluding student loans and other advances

ENDS

Officer for Enquiries

Kamlesh Patel | Office of the Chief Financial Officer and Chief Accountant Portfolio
Tel: +64 4 917 6094
Email: kamlesh.patel@treasury.govt.nz
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