Glossary

Glossary of terms used on the Treasury website and in Treasury and government publications. 

ACC unfunded liability

The future cost of past ACC claims, less the asset reserves held to meet these claims. The ACC outstanding claims liability is the gross liability of the future cost of past ACC claims.
Source: Budget Economic and Fiscal Update 2005

Annual reports

Annual reports are prepared in accordance with the requirements of the Companies Act. The annual report and audited consolidated financial statements of an SOE must be delivered to the shareholding Ministers within three months of balance date. The Responsible Minister for an SOE is required to present the annual report and audited financial statements to the House of Representatives.
Source: Putting It Together (1996)

Appropriation

A parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Source: A Guide to the Public Finance Act (August 2005)

Appropriation Bill

A bill seeking authority from Parliament for the Crown and Offices of Parliament to incur expenses or capital expenditure, or in the case of an Appropriation (Financial review) Bill, a bill seeking Parliament’s confirmation or validation of matters relating to the previous financial year.
Source: A Guide to the Public Finance Act (August 2005)

Approver issued levy

Tax on interest paid by borrowers in lieu of non-resident withholding tax being paid by the lender. The borrowers must gain approval to do this.
Source: Glossary of Tax Terms

Balance sheet

A statement of assets, liabilities and net worth. Termed the Statement of Financial Position in the Public Finance Act 1989.
Source: Fiscal Responsibility Act 1994: An Explanation

Bankruptcy remote

If an SPV is bankruptcy remote it has legal protection against claims arising from the bankruptcy of the originator, limiting the credit risk faced by investors to the assets of the SPV.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Baselines

The level of funding approved for any given spending area (eg, Education). All amounts within baselines are included in the forecasts.
Source: Budget Economic and Fiscal Update 2005

Budget

The Minister of Finance or Treasurer’s Financial Statement in moving the second reading of the first Appropriation Bill for a financial year; also the name given to documents and statements released by the Minister of Finance or Treasurer which outline the Government’s proposed economic and financial policies.
Source: A Guide to the Public Finance Act (August 2005)

Budget Policy Statement (BPS)

Budget Policy Statement includes information about the Government’s short-term fiscal intentions, longterm fiscal objectives and priorities for the coming Budget; sets the stage for an informed debate in the House on the parameters and priorities for the coming Budget; is reviewed by the FEC whose report is debated in the House before final Budget decisions are taken; The Budget Policy Statement is required to be published no later than 31 March each year.
Source: Putting It Together (1996)

Capital charge

Ensures that prices for goods and services produced by government departments reflect full production costs; allows comparison of the costs of output production with those of other producers (whether in the public or private sector); creates an incentive for departments to make proper use of working capital and to dispose of surplus fixed assets.
Source: Putting It Together (1996)

Carrying amount

The amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon.
Source: A Guide to the Public Finance Act (August 2005)

Commitments

Future expenditure to be incurred on contractual or statutory obligations entered into at balance date.
Source: Fiscal Responsibility Act 1994: An Explanation

Company tax

Income tax paid on the profits of resident companies, SOEs, superannuation funds and unit trusts, and New Zealand-derived profits of non-resident companies.
Source: Glossary of Tax Terms

Consolidated financial statements

The financial statements of a group presented as if they were those of a single economic entity.
Source: A Guide to the Public Finance Act (August 2005)

Contingent Liabilities

Contingent liabilities are costs, which the Crown will have to face if a particular uncertain and not probable event occurs. Typically, contingent liabilities consist of guarantees and indemnities, legal disputes and claims, and uncalled capital.
Source: Half Year Economic & Fiscal Update 2009

Conveyancing and lease duty

Duty paid on certain commercial property transactions (abolished 20 May 1999).
Source: Glossary of Tax Terms

Core Crown

The core Crown represents the revenues, expenses, assets and liabilities of the Crown, departments, Offices of Parliament, the Reserve Bank, and the NZS Fund.
Source: Half Year Economic & Fiscal Update 2009

Core Crown expenses

The day-to-day spending (eg, salaries, welfare benefit payments, finance costs and maintaining national defence etc) that does not build physical assets for the Government. This is an accrual measure of expenses and includes items such as depreciation on physical assets.
Source: Half Year Economic & Fiscal Update 2009

Core Crown revenue

Core Crown revenue mostly consists of tax revenue collected by the Government, but also includes investment income, sales of goods and services and other revenue.
Source: Half Year Economic & Fiscal Update 2009

Corporate tax

The sum of net company tax, non-residents withholding tax (NRWT) and foreign dividend withholding payments (FDWP).
Source: Glossary of Tax Terms

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Cost

Total price to be paid by an organisation (being the sum of direct and indirect, tangible and intangible charges).
Source: Treasury Working Paper 00/10: A theoretical framework for operational risk management and opportunity realisation

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Credit enhancement

Credit enhancement usually consists of third-party guarantees, subordinated debt, over-collateralisation, or cash deposit. The provision of credit enhancement protects investors against the prospect of losses resulting from the securitised assets.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Crown

Includes all Ministers of the Crown and all departments, but does not include an Office of Parliament, a crown entity, or a state enterprise.
Source: A Guide to the Public Finance Act (August 2005)

Crown bank account

The main bank account of the Crown opened, maintained and operated by the Treasury at a bank(s) directed by the Minister of Finance. Departmental Bank accounts are separate from the Crown Bank Account.
Source: A Guide to Appropriations

Crown entities

Organisations listed in schedule 1 or 2 of the Crown Entities Act 2004; a subsidiary of an organisation listed there, a school board of trustees and tertiary education institutions. The term crown entity covers a wide range of very different organisations that collectively undertake a range of different functions: regulatory, advisory, service delivery, devolved purchase and ownership. Most Crown entities exist under their own governing legislation. They form part of the crown reporting entity, but are not part of the Crown itself.
Source: A Guide to the Public Finance Act (August 2005)

Crown Financial Information System (CFISnet)

CFISnet is a secure web site designed by The Treasury to collect forecast and actual information from Government Departments, Crown Entities (CEs) and State-Owned Enterprises (SOEs).
Source: CFISnet website help page.

Crown reporting entity

Crown financial statements are prepared for the Crown reporting entity specified in the Public Finance Act 1989. The Crown reporting entity comprises: Ministers of the Crown; Departments; Offices of Parliament; State-owned enterprises; Crown entities; Reserve Bank of New Zealand.
Source: Putting It Together (1996)

Current account (balance of payments)

A measure of the flows of income between New Zealand and the rest of the world. A net inflow to New Zealand is a current account surplus, while a net outflow is a deficit. The current account balance is commonly expressed as a percentage of GDP.
Source: Budget Economic and Fiscal Update 2005

Customs duty

Duty levied on the imports of certain goods.
Source: Budget Economic and Fiscal Update 2005

Cyclically adjusted or structural fiscal balance

An estimate of the fiscal balance (eg, operating balance (before gains and losses)) adjusted for short-term fluctuations of actual GDP around trend GDP. The estimate provides a picture of the underlying trend fiscal position and an indication of the effects of policy decisions. Because it is based on a number of assumptions and is sensitive to new information, the estimate is subject to some uncertainty.
Source: Half Year Economic & Fiscal Update 2009

Demographic changes

Changes to the structure of the population, for example the age, sex or ethnic make-up of the population.
Source: Budget Economic and Fiscal Update 2005

Department

The departments that comprise the Public Service are listed in the First Schedule to the State Sector Act. In addition to those departments, the Public Finance Act includes the New Zealand Defence Force, New Zealand Police, Office of the Clerk, Parliamentary Counsel Office, Parliamentary Service, and New Zealand Security Intelligence Service. The latter six departments are also referred to as “Non-State Sector Act departments” or “Non-Public Service departments”.
Source: A Guide to the Public Finance Act (August 2005)

Department forecast reports

Departmental forecast reports (DFRs) establish expected performance as a basis for assessing actual performance.
Source: Putting It Together (1996)

Departmental outputs

Goods and services produced by a government department.
Source: Putting It Together (1996)

Depreciation

The wearing out, consumption or other loss of value of assets. Allocated as an expense over the estimated useful life of each asset.
Source: Fiscal Responsibility Act 1994: An Explanation

Dividend withholding tax (DWT)

Tax withheld on New Zealand-derived dividends paid to New Zealand residents.
Source: Glossary of Tax Terms

Domestic bond programme

The amount of new government stock (taking into account the repayment of maturing government stock) expected to be issued over the financial year to fund the Government’s cash flow requirements.
Source: Budget Economic and Fiscal Update 2005

Estimates

The Government’s request for appropriations, and supporting information, is presented to the House of Representatives at Budget time in a formal document known as the main Estimates (the full title is Estimates of Annual Appropriations for the Government of New Zealand); The Estimates detail appropriations sought from Parliament by Vote Ministers for expenses, expenditure and liabilities, for all purposes including classes of outputs. The Estimates also state how output classes are linked to the outcomes the Government is seeking.
Source: Putting It Together (1996)

Excise duties

Tax levied on the domestic production of alcohol, tobacco and of light petroleum products (CNG, LPG and petrol).
Source: Glossary of Tax Terms

Excise equivalent

Customs duty on imports of tobacco products, alcohol and light petroleum fuels equal in value to the excise that would have been collected on the equivalent domestic production.
Source: Glossary of Tax Terms

Executive

The Prime Minister and other Ministers and Parliamentary Under-Secretaries; the Government.
Source: A Guide to the Public Finance Act (August 2005)

Finance and Expenditure Committee (FEC)

The Finance and Expenditure Committee is a Parliamentary select committee that considers matters relating to the audit of the financial statements of the Government and departments, Government finance, revenue, and taxation.  .
Source: New Zealand Parliament website

Financial assets

Cash or shares (equity), a right to receive cash or shares (equity), or a right to exchange a financial asset or liability on favourable terms.
Source: Half Year Economic & Fiscal Update 2009

Financial review

Scrutiny by the House of the performance of the Government and government entities in the previous financial year.
Source: A Guide to the Public Finance Act (August 2005)

Fiscal intentions (short-term)

Under the Public Finance Act 1989, the Government must indicate explicitly its intentions for operating expenses, operating revenues, the operating balance, debt and net worth over (at least) the next three years.
Source: Half Year Economic & Fiscal Update 2009

Fiscal objectives (long-term)

The Government's long-term goals for operating expenses, operating revenue, the operating balance, debt and net worth, as required by the Public Finance Act 1989. The objectives must be consistent with the principles of responsible fiscal management outlined in the Act and cover a period of ten or more years.
Source: Half Year Economic & Fiscal Update 2009

Fiscal Responsibility Act

The Fiscal Responsibility Act: requires the Government to be explicit about its objectives and to explain any changes to them ; ensures the provision of comprehensive financial information for informed and focused debate about fiscal policy; requires the Government to specify its intentions for fiscal management beyond the next 12 months.
Source: Putting It Together (1996)

Fiscal strategy report

This report is required to be tabled in the House of Representatives at the time the Budget is presented, and must include: a comparison of the fiscal forecasts in the Budget economic and fiscal update with the Government’s objectives and intentions set out earlier in the Budget Policy Statement; progress outlooks with projections of fiscal trends covering at least the next ten years; and a comparison of the progress outlooks with the long term fiscal objectives set out in the Budget Policy Statement; Inconsistencies between the Fiscal Strategy Report and the Budget Policy Statement and the immediately preceding Fiscal Strategy Report must be explained and justified by the Government.
Source: Putting It Together (1996)

Forecast new capital spending

An amount provided in the forecasts to represent the balance sheet impact of capital initiatives expected to be introduced over the forecast period.
Source: Budget Economic and Fiscal Update 2005

Forecast new operating spending

An amount included in the forecasts to provide for the operating balance impact of policy initiatives and changes to demographics and other forecasting changes expected to occur over the forecast period.
Source: Budget Economic and Fiscal Update 2005

Foreign dividend withholding payments (FDWP)

Withholding payments on dividends paid to New Zealand companies from overseas.
Source: Glossary of Tax Terms

Fringe benefit tax (FBT)

Tax levied on non-cash benefits provided to employees as part of remuneration packages.
Source: Glossary of Tax Terms

Gains and losses

Gains and losses typically arise from the revaluation of assets and liabilities, such as investments in financial assets and long-term liabilities for ACC and GSF. Gains and losses are reported directly as a movement in net worth (eg, asset revaluation reserves) or indirectly through the Statement of Financial Performance. The impact of gains and losses on the operating balance can be volatile so the operating balance (before gains and losses) indicator can provide a more useful measure of underlying stewardship.
Source: Half Year Economic & Fiscal Update 2009

Gaming duty

Tax paid on the net income of gaming activities (lotteries, TAB betting, gaming machines and casinos).
Source: Glossary of Tax Terms

General purpose financial reports

Reports prepared for external users who do not have the ability to require or contract for the preparation of special reports to meet their specific information needs.
Source: A Guide to the Public Finance Act (August 2005)

Generally Accepted Accounting Practices (GAAP)

The term “generally accepted accounting practice” describes the assumptions and rules applied when preparing and presenting financial statements; In New Zealand the Financial Reporting Act 1993 requires most reporting entities in both the private and public sectors to comply with GAAP; The Financial Reporting Act defines GAAP as: approved financial reporting standards so far as they apply, or where there is no financial reporting standard or applicable rule of law, the accounting rules applied should: be appropriate to the circumstances, and have authoritative support within the New Zealand accounting profession.
Source: Putting It Together (1996)

Good employer practices

Compliance with relevant employment relations and human rights legislation1 as well as fair and ethical practices, such as: positive relationships with unions in the contractor’s trade or industry; observance of EEO principles and opportunities; work/life balance policies; provision of training and development opportunities; and ethics and integrity.
Source: Guidelines for Contracting with Non-Government Organisations

Goods and services tax (GST)

A broadly-based tax imposed on most goods and services consumed in New Zealand.
Source: Glossary of Tax Terms

Government

The party or parties that command a majority of the House on confidence and supply matters; also used to mean the Executive.
Source: A Guide to the Public Finance Act (August 2005)

Government Finance Statistics (GFS)

A cash-based system developed by the International Monetary Fund for classifying government revenue and expenditure in which current and capital flows are distinguished.
Source: Fiscal Responsibility Act 1994: An Explanation

Gross domestic product (GDP)

A measure of the value of all goods and services produced in New Zealand; changes in GDP measure growth in economic activity or output. GDP can be measured as the actual dollar value of goods and services measured at today’s prices (nominal GDP), or excluding the effects of price changes over time (real GDP).
Source: Budget Economic and Fiscal Update 2005

Gross domestic product (expenditure)

This is the sum of total final expenditures on goods and services in the economy.
Source: Budget Economic and Fiscal Update 2005

Gross national expenditure (GNE)

Measures total expenditure on goods and services by New Zealand residents.
Source: Budget Economic and Fiscal Update 2005

Gross Sovereign-Issued Debt (GSID)

Debt issued by the sovereign (the core Crown) including Government stock held by the NZS Fund, ACC and EQC.
Source: Half Year Economic & Fiscal Update 2009

House of Representatives

The elected Chamber of Parliament; made up of members elected to represent electorates and members elected from party lists.
Source: A Guide to the Public Finance Act (August 2005)

Imprest Supply Bill

A bill granting the Government interim authority to incur expenses and capital expenditure.
Source: A Guide to the Public Finance Act (August 2005)

Individuals' taxes

The sum of source deductions, net other persons tax and fringe benefit tax.
Source: Glossary of Tax Terms

Inputs

The resources used to produce goods and services.
Source: Putting It Together (1996)

Investors

Investors, usually institutions, purchase securities issued by the SPV. The securities are usually rated by external credit agencies and take the form of notes, commercial paper, bills, bonds or preferred stock.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Labour productivity

Measures output per input of labour (where labour inputs might be measured as hours worked or people).
Source: Budget Economic and Fiscal Update 2005

Liabilities

An accrual concept measured in accordance with generally accepted accounting practice (GAAP). Appropriations for liabilities relate only to non-departmental capital contributions, loans and the purchase or development of capital assets owned by the Crown. These are required at the time the Crown has an obligation to make the payment for any of these types of transactions and when the amount of that payment can be measured reliably.
Source: A Guide to Appropriations

Line-by-line consolidation

This is a term used to refer to the general approach to the presentation of the Crown financial statements. It means that the individual line items for revenues, expenses, assets and liabilities in the Crown financial statements include all departments, Offices of Parliament, the Reserve Bank, SOEs, Crown entities, and other entities controlled by the Government.
Source: Half Year Economic & Fiscal Update 2009

Liquidity support

Liquidity support is provided to a SPV to assist meeting payments to investors in the event of there being insufficient cash flow from the receivables. This service is usually provided by a financial institution, such as a bank, and is required by credit rating agencies and investors.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Marketable securities

Assets held with financial institutions. These assets are held for both cash flow and investment purposes, and include any funds the Government has invested in the International Monetary Fund.
Source: Half Year Economic & Fiscal Update 2009

Marketable securities and deposits

Assets held with financial institutions. These assets are held for both cash flow and investment purposes, and include any funds the Government has invested in the International Monetary Fund.
Source: Budget Economic and Fiscal Update 2005

Minister

A member of Parliament who is part of the Executive and who is usually responsible for one or more government departments or ministries.
Source: A Guide to the Public Finance Act (August 2005)

Mixed Member Proportional (electoral system) (MMP)

.
Source: Fiscal Responsibility Act 1994: An Explanation

Monetary conditions

The combination of interest rates and the exchange rate.
Source: Budget Economic and Fiscal Update 2005

Monetary policy

Action taken by the Reserve Bank to affect interest rates and the exchange rate in order to control inflation. Tightening monetary policy refers to actions taken by the Reserve Bank to raise interest rates (which can influence the exchange rate) in order to moderate demand pressures to reduce inflationary pressures.
Source: Budget Economic and Fiscal Update 2005

Net company tax

Company tax net of refunds paid to companies, etc.
Source: Glossary of Tax Terms

Net core Crown debt

Represents GSID less core Crown financial assets (excluding advances and financial assets held by the NZS Fund). Advances and financial assets held by the NZS Fund are excluded as these assets are less liquid and they are made for public policy reasons rather than for the purposes associated with government financing. Net core Crown debt provides information about the sustainability of the Government's accounts, and is used by some international agencies when determining the creditworthiness of a country.
Source: Half Year Economic & Fiscal Update 2009

Net other persons tax

Other persons tax net of refunds paid to individuals.
Source: Glossary of Tax Terms

Net worth

Total assets less total liabilities (also referred to as the Crown balance). The change in net worth in any given forecast year is largely driven by the operating balance.
Source: Half Year Economic & Fiscal Update 2009

Net worth

Assets less liabilities (also referred to as Crown balance).
Source: Budget Economic and Fiscal Update 2005

Net worth excluding social sssets

Net worth excluding social assets provides the government with an idea of how its assets that earn a financial return match its liabilities. The measure consists of the financial assets of the core Crown and Crown Entities, all the assets of State-Owned Enterprises (excluding KiwiRail), and total liabilities.
Source: Half Year Economic & Fiscal Update 2009

Non-departmental outputs

refer to goods and services purchased by a Minister from a provider that is not a government department. For example the Minister of Social Welfare purchases services for the public from community-based providers and voluntary groups. Crown entities are often providers of these nondepartmental outputs.
Source: Putting It Together (1996)

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Non-Government Organisation (NGO)

""Non-Government organisation"". In this guide unless context requires otherwise ""NGO"" encompasses: community or voluntary organisations; Maori iwi and hapu organisations; for-profit organisations where Government organisations contract with them for the delivery of outputs .
Source: Guidelines for Contracting with Non-Government Organisations

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Non-resident withholding tax

Tax on New Zealand-derived dividends, interest and royalties paid to non-residents.
Source: Glossary of Tax Terms

NZ IFRS

New Zealand equivalents to InternationalFinancial Reporting Standards. These standards are approved by the Accounting Standards Review Board in New Zealand and are based on the requirements of the international financial reporting standards issued by the International Accounting Standards Board adjusted where appropriate for entities that are not profit oriented.
Source: Half Year Economic & Fiscal Update 2009

Obligor

An obligor is a customer of the originator who is obliged to pay on a contractual basis for goods or services provided by the originator (eg, a trade debtor or a home loan borrower).
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Off balance sheet sale treatment

Securitisation transactions may be structured such that the assets are removed from the originators' balance sheet for accounting and regulatory purposes.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Offices of Parliament

The primary function of an Office of Parliament is to be a check on the Executive, as part of Parliament’s constitutional role of ensuring the accountability of the Executive. An Office of Parliament must discharge functions which the House itself might appropriately undertake. At time of publication there were three Offices of Parliament: Office of the Controller and Auditor-General, Parliamentary Commissioner for the Environment and Office of the Ombudsmen.
Source: A Guide to the Public Finance Act (August 2005)

Operating allowance

The amount included in the Fiscal Strategy Report projections for new initiatives, including spending and cost pressures. The allowance is a projection assumption. The projections in the Fiscal Strategy Report also include an allowance for capital spending.
Source: Half Year Economic & Fiscal Update 2009

Operating balance

The operating balance is the residual of revenues less expenses plus surpluses from state-owned enterprises and Crown entities. It includes gains and losses not reported directly as a movement against net worth.
Source: Half Year Economic & Fiscal Update 2009

Operating balance before gains and losses

The operating balance (before gains and losses) is the operating balance excluding gains and losses. The impact of gains and losses on the operating balance can be volatile so the operating balance (before gains and losses) indicator (because it excludes gains and losses) can provide a more useful measure of underlying stewardship.
Source: Half Year Economic & Fiscal Update 2009

Originator

The seller of assets, called the originator, transfers ownership of the assets to the SPV and usually continues to service the assets in exchange for a management fee.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Other persons tax

Tax paid mainly by individuals and trusts on income that is not withheld, or is under-withheld, at source. Typically, this is tax paid by small-business operators and investors. Terminal tax from wage and salary earners also falls into this category.
Source: Glossary of Tax Terms

Outcome

Defined in the Public Finance Act 1989 as the "impacts on, or consequences for the community of the outputs or activities of the Government".
Source: Guidelines for Contracting with Non-Government Organisations

Outputs

Outputs are goods and services purchased by the Crown from departments and other entities. Outputs range from policy advice to the administration of contracts and grants through to the provision of specific services.
Source: A Guide to Appropriations

Over-collateralisation

The holding of assets of greater value than is needed to support contractual payments, so that the investor is protected in the event of a shortfall in expected payments.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Parliament

The Sovereign and the House of Representatives.
Source: A Guide to the Public Finance Act (August 2005)

Parliamentary Select Committee

A committee of members of the House of Representatives whose terms of reference and members are approved by the House.
Source: Fiscal Responsibility Act 1994: An Explanation

Participation rate

Measures the percentage of the working age population in work or actively looking for work.
Source: Budget Economic and Fiscal Update 2005

Projections

Projections of the key fiscal indicators beyond the five-year forecast period. The projections are based on long-run economic and fiscal assumptions. For example, the projections assume no economic cycle and constant long-run interest, inflation and unemployment rates.
Source: Budget Economic and Fiscal Update 2005

Provisional tax

A thrice-yearly payment of income tax on income that has not been taxed, or been under-taxed, at source.
Source: Glossary of Tax Terms

Public Finance (State Sector Management) Bill (PFSSM)

Bill to amend the PFA.
Source: Budget Process Guide for Departments and Ministerial Offices 2005

Public Finance Act 1989 (PFA)

The Public Finance Act provides a framework for Government financial activity and expenditure of public money.
Source: [Web Site]

Purchase agreements

Assist Ministers to: decide what outputs to purchase; negotiate agreed cost, quality, quantity, and delivery time; record and change decisions; verify subsequent output delivery; hold the supplier accountable for delivery of the specified outputs. Purchase agreements include the following detail: term of agreement; description of outputs; cost of outputs; performance measures and standards; procedures for assessing performance;reporting requirements; rewards and sanctions; procedures for amending the agreement; procedures for resolving disputes.
Source: Putting It Together (1996)

Rated securities

A financial instrument, usually a debt security, that has been assigned a rating of default risk by one or more credit rating agencies.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Resident withholding tax (RWT)

Tax withheld on New Zealand residents' interest income.
Source: Glossary of Tax Terms

Residual cash

The level of money the Government has available to repay debt or, alternatively, needs to borrow in any given year. Residual cash is alternatively termed “Cash available/(shortfall to be funded)”. Residual cash is equal to net core Crown cash flow from operations excluding NZS Fund activity less core Crown capital commitments (eg, contributions to NZS Fund, purchase of assets, loans to others).
Source: Half Year Economic & Fiscal Update 2009

Responsible Minister

The Minister responsible for the financial performance of a department or Crown entity. In relation to an Office of Parliament, the Speaker of the House of Representatives is the Responsible Minister.
Source: A Guide to Appropriations

Short-term fiscal intentions

Under the Public Finance Act 1989, the Government must indicate explicitly its intentions for operating expenses, operating revenues, the operating balance, debt and net worth over the next three years.
Source: Budget Economic and Fiscal Update 2005

Source deductions

Tax withheld on wages, salaries, social welfare benefits, bonuses, lump-sum payments and superannuation fund contributions. About 80% of source deductions come from PAYE on wages and salaries. Source deductions is the biggest, single tax type.
Source: Glossary of Tax Terms

Speaker

The principal presiding officer of the House, elected by the members.
Source: A Guide to the Public Finance Act (August 2005)

Special purpose financial reports

Financial reports tailored to meet the specific information needs of a particular user.
Source: A Guide to the Public Finance Act (August 2005)

Special purpose vehicle (SPV)

When receivables are securitised their ownership is transferred to an SPV. SPVs usually take the form of a bankruptcy remote trust or incorporated entity. In both cases, the appointed trustees or the board of directors have a fiduciary duty to protect the interests of investors.
Source: Glossary of Securitisation Terms' in Treasury Working Paper - Securitisation: A Public Policy Tool?

Specific fiscal risks (SFR)

These are a category of Government decisions or circumstances which may have a material impact on the fiscal position (excluding contingent liabilities). They are not included in the main forecasts because their fiscal impact cannot be reasonably quantified, the likelihood of realisation is uncertain and/or the timing is uncertain.
Source: Budget Economic and Fiscal Update 2005

Stamp duty

Includes conveyancing and lease duty (prior to 20 May 1999), cheque duty, credit card duty (prior to 1 April 1998) and approved issuer levy.
Source: Glossary of Tax Terms

Statement of corporate intent

The Statement of Corporate Intent is prepared by the board of directors who must supply it in draft form to the shareholding Ministers no later than one month before the start of each financial year. The responsible Minister for the SOE is required to present the SCI to the House. The SCI covers a three-year period and includes the: SOE’s objectives; nature and scope of activities to be undertaken; ratio of shareholders’ funds to total assets; accounting policies; performance targets; dividend policy and proposed distributions; the board’s estimate of the commercial value of the Crown’s investment.
Source: Putting It Together (1996)

State-owned enterprise (SOE)

SOEs are businesses (typically companies) listed in the First Schedule to the State-Owned Enterprises Act 1986. SOEs operate as a commercial business but are owned by the State. They have boards of directors, appointed by shareholding Ministers to take full responsibility for running the business.
Source: A Guide to the Public Finance Act (August 2005)

Stock change

The change in the value of stocks (raw materials, work in progress, and finished goods) during a given period.
Source: Budget Economic and Fiscal Update 2005

Supplementary Estimates

Supplementary Estimates are prepared for the current year to seek parliamentary approval for: changes to any appropriation type; any further capital investment; changes in output prices; new outputs to be produced; changes relating to other expenses and benefits.
Source: Putting It Together (1996)

System of National Accounts (SNA)

SNA is a comprehensive, consistent and flexible set of macroeconomic accounts to meet the needs of government and private sector analysts, policy-makers, and decision-takers. See www.imf.org for further information.
Source: Budget Economic and Fiscal Update 2005

Tax receipts

Tax that has been physically paid from a taxpayer to the relevant collection agency. Also referred to as cash.
Source: Glossary of Tax Terms

Tax refund

Tax repaid to a taxpayer in settlement of over-payment of tax.
Source: Glossary of Tax Terms

Tax revenue

The accrual, rather than the cash (“tax receipts”) measure of taxation. It is a measure of tax due, regardless of whether or not it has actually been paid.
Source: Half Year Economic & Fiscal Update 2009

Terminal tax

Tax paid by a taxpayer at the end of a tax-year in settlement of under-payment of tax during the year.
Source: Glossary of Tax Terms

Thin capitalisation

A tax rule applicable to a non-resident-owned business that limits tax deductions for interest payments based on its level of debt relative to its assets.
Source: Budget Economic and Fiscal Update 2005

Trade Weighted Index (TWI)

A measure of movements in the New Zealand dollar against the currencies of our major trading partners. The currencies comprise the US dollar, the Australian dollar, the Japanese yen, the euro and the UK pound.
Source: Budget Economic and Fiscal Update 2005

Unit labour costs

The wages and other costs associated with employment per unit of output.
Source: Budget Economic and Fiscal Update 2005

Vote

A grouping of one or more appropriations that are the responsibility of a Minister of the Crown and are administered by a department. Votes generally take the name of the portfolio of the Vote Minister.
Source: A Guide to Appropriations

Year ended

Graphs and tables use different expressions of the timeframe. For example, 2004/05 or 2005 will generally mean “year ended 30 June” unless otherwise stated.
Source: Budget Economic and Fiscal Update 2005