Crown Financial Statements for Fiscal Year Ended 30 June 2013

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.

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.