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Media StatementFinancial Statements of the Government of New Zealand for the Ten Months Ended 30 April 2007

8 June 2007

Dr Peter Bushnell
Deputy Secretary to the Treasury

The Financial Statements of the Government of New Zealand for the ten months ended 30 April 2007 were released by the Treasury today.

These financial statements have been prepared in accordance with Generally Accepted Accounting Practice, which encompasses approved financial reporting standards that will be applied by the Crown until 30 June 2007. For financial statements beginning on or after 1 July 2007, New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) will be applied.

The 30 April 2007 monthly financial statements are compared against updated monthly forecast tracks based on the 2007 Budget Economic and Fiscal Update.

$ millionApril 2007
Actual
YTD
April 2007
Forecast
YTD
Variance
$m
HYEFU June
2007
Forecast
June
2006
Actual
Residual cash1,1478932541,7202,985
Operating balance6,7777,157(380)6,56811,473
OBERAC6,9867,157(171)7,6998,648
Gross sovereign-issued debt38,17137,90926237,21735,461
% of GDP24.224.00.223.322.6
Net core Crown debt5,0145,251(237)4,6127,745
% of GDP3.23.3(0.1)2.94.9
Net core Crown debt with NZS Fund assets(7,439)(7,401)(38)(8,306)(2,116)
% of GDP(4.7)(4.7)(0.0)(5.2)(1.3)
Net worth88,53888,917(379)88,46071,403

The following table outlines the key variances for the year to 30 April 2007:

Item/indicatorVarianceKey drivers
Tax Revenue- $0.2 billionPAYE and GST timing issues
Net of sales of goods and services and operating expenses+ $0.1 billionMainly due to lower sales by electricity companies, offset by lower operating expenses
Net investment income - $0.2 billionLower than forecast unrealised gains on NZSF investments ($0.7 billion), offset by NZSF foreign exchange losses being less than forecast by $0.5 billion
Core Crown expenditure (excluding net foreign exchange gains/losses)+ $0.1 billionDelays in actual departmental spending of $0.3 billion, offset by top-down adjustment in forecast of $0.2 billion
OBERAC- $0.2 billionMainly due to lower tax revenue, offset by delays in departmental spending
GSID+ $0.3 billionReductions in DMO issuance of Treasury Bills and Government Stock ($0.2 billion), offset by settlement cash level being higher than forecast by $0.4 billion
Net Worth- $0.4 billionOperating balance impact of the lower than expected net investment returns and tax revenue, offset by delays in departmental spending
Residual cash+ $0.3 billionDelays in departmental spending on operating ($0.2 billion in cash terms), capital ($0.2 billion), offset by top-down adjustment allocation

ENDS

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Kamlesh Patel | Macroeconomic Group
Tel: +64 4 471 5094
Fax: +64 4 471 5956
Email: kamlesh.patel@treasury.govt.nz
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