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Media StatementFinancial Statements of the Government of New Zealand for the Seven Months Ended 31 January 2008

18 March 2008

Dr Peter Bushnell
Deputy Secretary to the Treasury

Revised Financial Statements of the Government of New Zealand for the seven months ended 31 January 2008 were released by the Treasury today.

They were revised to correct a $0.6 billion error in tax revenue reported in the Statements released on 6 March.  No other changes have been made.

Revised January results

  • The operating balance is in surplus by $0.2 billion (previously reported as a deficit of $0.4 billion). This is $3.6 billion lower than forecast primarily due to:
    • $2.5 billion lower than forecast returns on the financial asset portfolios of the NZS Fund ($1.5 billion lower than forecast), ACC ($0.7 billion lower than forecast) and EQC ($0.3 billion lower than forecast), and
    • $1.0 billion more than forecast loss on the revaluation of the ACC claims liability.
  • Adjusting for the non-cash valuation changes, the OBEGAL was in line with the forecast with a surplus of $3.6 billion (previously reported as a surplus of $3.1 billion).
  • Residual cash and consequently the debt indicators were largely on target (these were not affected by the error).

  Year to date Full Year
January
2008
Actual
January
2008
Forecast
Variance
$m
Variance
%
HYEFU
June 2008
Forecast
$ million  
Core Crown  
Core Crown revenue (excl. NZS Fund) [1] 34,637 35,143 (506) (1.4) 62,130
Core Crown expenses 32,126 32,525 399 1.2 57,137
NZS Fund operating balance (911) 539 (1,450) (269.0) 917
Core Crown residual cash 478 588 (110) (18.7) 759
GSID (excl. settlement cash) 31,605 31,595 (10) (0.0) 33,303
   as a percentage of GDP [2] 18.5% 18.5% 18.7%
Net Core Crown debt 2,647 2,634 (13) (0.5) 1,983
   as a percentage of GDP [2] 1.5% 1.5% 1.1%
Net Core Crown debt (incl. NZS Fund) (9,257) (10,708) (1,451) 13.6 (13,102)
   as a percentage of GDP [2] (5.4)% (6.3)% (7.4)%
Total Crown          
OBEGAL 3,649 3,690 (41) (1.1) 6,574
Net gains / (losses) (3,536) 15 (3,551) 636
Operating Balance (198) 3,793 (3,595) (94.8) 7,388

1  For the purposes of this indicator the NZS Fund is treated as a third party (i.e. its revenue is not included but the tax it pays is).

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

ENDS

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