The 2016 Snapshot [of the Financial Statements of the Government]
The key facts and figures of the Financial Statements of the Government for the year ended 30 June 2016.
The snapshot is a high level presentation of key facts and figures of the financial year, intended to make the financial statements more user friendly and accessible.
While the information in this snapshot of the financial statements is drawn from and is consistent with information presented in the full Financial Statements of the Government of New Zealand for the Year Ended 30 June 2016, it is not intended to be read as a full picture of the New Zealand Government's financial performance or position.
The 2016 Snapshot [of the Financial Statements of the Government] (Part 1)
Real gross domestic product growth annual average rate was 2.8% mainly due to robust growth in construction, household consumption and tourism.
In current dollar terms, the value of output increased 4.2% in the June 2016 year, up from 2.8% growth in the previous June year.
Annual average % change in GDP
Facts and figures – June year (compared to 2015)
- $251.8 billion nominal GDP (↑ $10.2b)
- $227.2 billion real GDP (↑ $6.1b)
- 1,484,000 average full time equivalent employees (↑ 40,175)
- $29.62 average ordinary time hourly rate (↑ 2.1%)
- 5.2% average unemployment (↓ 0.2%)
- 0.3% annual average inflation (↓ 0.3%)
Where does the Government's money come from?
Total revenue: $98.2b (39.0% of GDP)
- 71% of revenue was from collection of tax (↑ $3.6b)
- 83% of sales of goods & services are from SOEs (eg, NZ Post and listed companies)
- 12% of total revenue was from other sources (eg, ACC, EQC, interest and fire service levies)
Core Crown tax revenue
- $70.4 billion (↑ $3.8b)
- 28.0% of GDP
Who pays income tax, and how much?
Next March tax year 3.6 million New Zealanders are expected to pay individuals tax of $31.2 billion – an average of $8,667 each
How was the money spent?
Total expenses: $95.9b (38.1% of GDP)
- $73.9 billion core Crown expenses (↑ $1.6b)
- 23% of all spending was by SOEs and Crown Entities
$52.9 billion was spent on welfare, health, education
$12.3 billion to provide 690,600 superannuitants with income support and $4.3 billion to 295,000 people receiving Jobseeker Support and Emergency Benefit, Sole Parent Support and Supported Living Payment.
$11.8 billion of funding to District Health Boards, which contributed to services to meet the needs of each district’s population. The health and disability system provided over 13.2 million visits to GPs and over 1.1 million presentations to emergency departments.
$13.2 billion helped to fund 96.6% participation in early childhood education, 83.3% of 18 year olds to achieve NCEA Level 2 or equivalent and 358,000 tertiary students.
OBEGAL surplus continued to grow
Operating balance before gains and losses (OBEGAL)
- $1.8 billion surplus (↑ $1.4b)
- Growth in tax revenue has outpaced growth in expenditure
- Core Crown tax revenue was $3.8 billion more than last year
- Core Crown expenses increased $1.6 billion from last year
Operating balance(after gains and losses)
- Gains and losses can be volatile
- Net losses for the year were $7.2 billion (↑ $12.6b)
- Valuations of long term liabilities resulted in large losses for the ACC insurance liability and the
- Government Superannuation Fund retirement liability
- These losses combined with the OBEGAL surplus resulted in a $5.4 billion operating balance deficit (↑ $11.2b)
The 2016 Snapshot [of the Financial Statements of the Government] (Part 2)
Cash deficit increased core Crown net debt
|Analysis of cash deficit||$b|
|Operating cash surplus||3.3|
|Core Crown capital spend||(4.6)|
- Capital Spend (↑ $1.2b)
Core Crown net debt
$61.9 billion core Crown net debt
- $1.2 billion increase from last year due to continuing cash deficits
- Relatively flat as a percentage of GDP (0.5% decrease on last year)
Operating receipts → Operating spending → Capital spending → Cash deficit → Net debt
The Crown balance sheet
- The Crown balance sheet grew over the year with total assets reaching $293 billion
- Liabilities stand at $197 billion
- Financial assets and liabilities are particularly sensitive to changes in market rates such as share prices
Balance sheet sensitivities
Impact on operating balance of change in key market rates
Balance sheet composition
- Social sector net worth $130.2 billion
$149.4 billion of social sector assets (eg, schools, hospitals and social housing), an increase of
$9.7 billion from last year.
Social sector liabilities were $19.2 billion, a $1.6 billion increase driven mainly by an increase in the New Zealand ETS provision.
- Financial sector net worth ($56.4 billion)
Financial sector assets were fairly stable, with a $0.9 billion increase from last year to $87.9 billion.
Financial sector liabilities grew $7.1 billion to $144.4 billion, mainly due to the ACC insurance liability increasing by $6.6 billion.
- Commercial sector net worth $21.8 billion
Commercial sector assets increased by $2.9 billion to $55.3 billion, while commercial sector liabilities ($33.6 billion) increased by $1.5 billion from last year.
$1.1 billion of the growth in both assets and liabilities was as a result of Kiwibank loans and deposits increasing by similar amounts, while property, plant and equipment valuation uplifts and additions helped increase commercial sector assets.