Back to top anchor
Media statement

Interim Financial Statements of the Government of New Zealand for the nine months ended 31 March 2021

Issue date: 
Thursday, 6 May 2021
Corporate author: 
View point: 
Document Date: 
Thursday, 6 May 2021
Publication category: 
Fiscal year: 

The interim Financial Statements of the Government of New Zealand for the nine months ended 31 March 2021 (the financial statements) were released by the Treasury today.

The March 2021 Interim Financial Statements of the Government show that the position and performance of the Crown continue to be stronger than forecast in the Half Year Economic and Fiscal Update (HYEFU).

The results show the impacts of the COVID-19 pandemic are still visible, with an operating balance before gains and losses (OBEGAL) deficit of $4.3 billion and continued higher levels of net core Crown debt of $105.3 billion (33.3% of GDP).

  Year to date Full Year
HYEFU 2020
HYEFU 2020
HYEFU 2020
HYEFU 2020
Core Crown          
Core Crown tax revenue 69,906 65,926 3,980 6.0 88,346
Core Crown revenue 74,806 70,703 4,103 5.8 94,993
Core Crown expenses 79,087 79,350 263 0.3 114,232
Core Crown residual cash (17,393) (23,571) 6,178 26.2 (40,177)
Net core Crown debt4 105,310 111,955 6,645 5.9 128,649
as a percentage of GDP 33.3% 35.4%     39.7%
Gross debt5 107,648 102,627 (5,021) (4.9) 91,669
as a percentage of GDP 34.0% 32.4%     28.3%
Total Crown          
Operating balance before gains and losses (4,272) (9,435) 5,163 54.7 (21,576)
Operating balance (excluding minority interests) 11,271 (13,718) 24,989 182.2 (25,639)
Total borrowings 163,995 169,411 5,416 3.2 186,622
Net worth attributable to the Crown 121,926 96,057 25,869 26.9 83,881
as a percentage of GDP 38.5% 30.3%     25.9%
  1. Using the most recently published GDP (for the year ended 31 December 2020) of $316,687 million (Source: Statistics NZ).
  2. Favourable variances against forecast have a positive sign and unfavourable variances against forecast have a negative sign.
  3. Using HYEFU 2020 forecast GDP for the year ending 30 June 2021 of $323,897 million (Source: The Treasury).
  4. Net core Crown debt excluding student loans and other advances. Net debt may fluctuate during the year largely reflecting the timing of tax receipts.
  5. Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.

Core Crown tax revenue for the nine months to March 2021 was $4.0 billion (6.0%) above the HYEFU 2020 forecast primarily owing to:

  • Corporate tax, source deductions and GST revenue were all ahead of forecast by $1.3 billion (14.7%) $1.1 billion (4.1%), and $1.0 billion (5.7%) respectively. These positive variances to forecast reflect an improvement in economic conditions, in particular higher profitability, better labour market conditions and stronger domestic spending than forecast.

Core Crown expenses at $79.1 billion were close to forecast.

The OBEGAL deficit of $4.3 billion, was $5.2 billion lower than the forecast deficit of $9.4 billion. This variance was primarily driven by the core Crown tax results discussed above. When total gains and losses are added to the OBEGAL result, the operating balance was a $11.3 billion surplus, $25.0 billion better than the forecast $13.7 billion deficit. The favourable gains and losses primarily related to:

  • A valuation gain of $7.8 billion on ACC’s insurance liability compared to the $4.2 billion of losses forecast. This $12.1 billion improvement was largely a result of changes to the discount rates and CPI assumptions used to revalue this liability at 31 March 2021.
  • NZSF and ACC reporting significant positive variances to forecast in financial instruments and investments, totalling $7.2 billion.

The core Crown residual cash deficit of $17.4 billion was $6.2 billion smaller than the deficit forecast. This was largely owing to tax receipts being $3.4 billion higher than expected while operating costs and capital payment outflows were $2.5 billion lower than forecast largely owing to lower than anticipated uptake of advances of the Funding for Lending Programme.

Net core Crown debt was $105.3 billion (33.3% of GDP) at 31 March 2021, $6.6 billion lower than forecast primarily owing to the favourable core Crown residual cash variance discussed above.

Net worth attributable to the Crown at $121.9 billion was $25.9 billion higher than forecast. This variance was primarily owing to the favourable operating balance variance of $25.0 billion and the revaluation of defined benefit retirement plan schemes being $1.4 billion higher than forecast.



Treasury Communications Team
Email: [email protected]
Last updated: 
Thursday, 6 May 2021