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.
| $ million | April 2007 Actual YTD |
April 2007 Forecast YTD |
Variance $m |
HYEFU June 2007 Forecast |
June 2006 Actual |
|---|---|---|---|---|---|
| Residual cash | 1,147 | 893 | 254 | 1,720 | 2,985 |
| Operating balance | 6,777 | 7,157 | (380) | 6,568 | 11,473 |
| OBERAC | 6,986 | 7,157 | (171) | 7,699 | 8,648 |
| Gross sovereign-issued debt | 38,171 | 37,909 | 262 | 37,217 | 35,461 |
| % of GDP | 24.2 | 24.0 | 0.2 | 23.3 | 22.6 |
| Net core Crown debt | 5,014 | 5,251 | (237) | 4,612 | 7,745 |
| % of GDP | 3.2 | 3.3 | (0.1) | 2.9 | 4.9 |
| 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 worth | 88,538 | 88,917 | (379) | 88,460 | 71,403 |
The following table outlines the key variances for the year to 30 April 2007:
| Item/indicator | Variance | Key drivers |
|---|---|---|
| Tax Revenue | - $0.2 billion | PAYE and GST timing issues |
| Net of sales of goods and services and operating expenses | + $0.1 billion | Mainly due to lower sales by electricity companies, offset by lower operating expenses |
| Net investment income | - $0.2 billion | Lower 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 billion | Delays in actual departmental spending of $0.3 billion, offset by top-down adjustment in forecast of $0.2 billion |
| OBERAC | - $0.2 billion | Mainly due to lower tax revenue, offset by delays in departmental spending |
| GSID | + $0.3 billion | Reductions 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 billion | Operating balance impact of the lower than expected net investment returns and tax revenue, offset by delays in departmental spending |
| Residual cash | + $0.3 billion | Delays in departmental spending on operating ($0.2 billion in cash terms), capital ($0.2 billion), offset by top-down adjustment allocation |
ENDS
Officer for Enquiries
Kamlesh Patel | Macroeconomic GroupTel: +64 4 471 5094
Fax: +64 4 471 5956
Email: kamle[email protected]
Last updated:
Tuesday, 30 October 2007