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Media StatementFinancial Statements of the Government of New Zealand for the Six Months Ended 31 December 2007

18 February 2008

Dr Peter Bushnell
Deputy Secretary to the Treasury

The Financial Statements of the Government of New Zealand for the six months ended 31 December 2007 were released by the Treasury today.

The 31 December 2007 monthly financial statements are compared against monthly forecast tracks based on the 2007 Half Year Budget Economic and Fiscal Update.

December highlights

  • OBEGAL was $20 million (0.8%) lower than forecast at $2,529 million (compared to a forecast of $2,549 million), with both tax revenue and core Crown expenses broadly in line with what was expected
  • However, the operating balance was $1,696 million (67.5%) lower than forecast at $815 million (compared to a forecast of $2,511 million).  This was primarily driven by:
    • investment losses recorded by Crown Financial Institutions (CFIs), and
    • an increase in the ACC unfunded liability
  • Core Crown residual cash was $356 million lower than forecast at -$812 million (compared to a forecast of -$456 million).  This was mainly due to higher than expected operating payments ($235 million) and lower than expected tax receipts ($154 million)
  • GSID (excluding settlement cash) was 18.8% of GDP compared to a forecast of 18.4% (based on September 2007 GDP), and
  • Net core Crown debt was $202 million lower than forecast at $3,598 million (compared to a forecast of $3,800 million).
     

  Year to date Full Year
December
2007
Actual
December
2007
Forecast
Variance
$m
Variance
%
HYEFU
June 2008
Forecast
$ million  
Core Crown  
Core Crown revenue (excl. NZS Fund) [1] 29,455 29,626 (171) (0.6) 62,130
Core Crown expenses 27,698 28,017 319 1.1 57,137
NZS Fund operating balance (230) 470 (700) (148.9) 917
Core Crown residual cash (812) (456) (356) 78.1 759
GSID (excl. settlement cash) 32,106 31,407 (699) (2.2) 33,303
   as a percentage of GDP [2] 18.8% 18.4% 18.7%
Net Core Crown debt 3,598 3,800 202 5.3 1,983
   as a percentage of GDP [2] 2.1% 2.2% 1.1%
Net Core Crown debt (incl. NZS Fund) (8,755) (9,314) (559) 6.0 (13,102)
   as a percentage of GDP [2] (5.1)% (5.4)% (7.4)%
Total Crown          
OBEGAL 2,529 2,549 (20) (0.8) 6,574
Operating Balance 815 2,511 (1,696) (67.5) 7,388

1  NZS Fund revenue is the sum of its revenue (ie, interest and dividends) adjusted to add back tax revenue received by Inland Revenue from the Fund.

2  GDP for the year ended 30 September 2007 (Source: Statistics New Zealand).

ENDS

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