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Media Statement: Crown Financial Statements for Fiscal Year Ended 30 June 2013

7 Oct 2013

Fergus Welsh, Chief Financial Officer

Crown Financial Statements for Fiscal Year Ended 30 June 2013

The Treasury has published the Financial Statements of the Government of New Zealand for the fiscal year that ended on 30 June 2013.

Overall, key indicators were stronger than forecast in Budget 2013.

Core Crown tax revenue of $58.7 billion was 0.6% higher than forecast, driven in part by a positive variance in corporate tax mainly owing to higher-than expected current-year taxable profits.

Core Crown expenses of $70.3 billion were 1.9% lower than expected.   The largest area contributing to the lower than forecast result were costs associated with the Canterbury earthquake. 

The total Crown’s operating balance excluding gains and losses (OBEGAL) was a deficit of $4.4 billion. Expressed as a ratio to the size of the economy, the deficit stood equivalent to 2.1% of GDP. That was smaller than forecast and down from deficits of 4.4% and 9.2% of GDP in the previous two fiscal years.

Net investment gains, led by the New Zealand Superannuation Fund and by the Accident Compensation Corporation, contributed to the total Crown’s operating balance inclusive of gains and losses recording a $6.9 billion surplus. At 30 June, total Crown assets were $244.4 billion and liabilities were $174.4 billion. Net Worth attributable to the Crown increased for the first time since the Global Financial Crisis.

The core Crown operating cash deficit was $4.5 billion. After taking account of capital expenditure during the year, there was a residual cash deficit of $5.7 billion at 30 June. The cash shortfall was funded through additional borrowing which pushed core Crown net debt to $55.8 billion, equivalent to 26.3% of GDP.


Actuals ($million) Variance (%)

2009 2010 2011 2012 2013 2012 BEFU 2013

Core Crown

             
Core Crown tax revenue 54,681 50,744 51,557 55,081 58,651 6.5% 0.6%
Core Crown expenses 64,002 64,013 70,450 69,076 70,306 1.8% -1.9%
Core Crown residual cash (8,639) (9,000) (13,343) (10,644) (5,742) -46.1% -25.9%
Gross debt 43,356 53,591 72,420 79,635 77,984 -2.1% -0.8%
as a percentage of GDP 23.4% 27.9% 36.2% 38.2% 36.7%    
Net debt 17,119 26,738 40,128 50,671 55,835 10.2% -3.6%
as a percentage of GDP 9.2% 13.9% 20.0% 24.3% 26.3%    

Total Crown

             
OBEGAL (3,893) (6,315) (18,396) (9,240) (4,414) -52.2% -29.8%
Operating balance (10,505) (4,509) (13,360) (14,897) 6,925 -146.5% 261.1%
Net worth attributable to the Crown 99,068 94,586 80,579 59,348 68,071 14.7% 10.7%

Note: Using GDP for the year ended 30 June 2013 (Source: Statistics New Zealand); Gross sovereign-issued debt excluding settlement cash and Reserve Bank bill; Net core Crown debt excluding student loans and other advances.

 

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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