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Contents#
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The economy continued to grow#Where does the Government's money come from?#Your tax dollar - where was it spent?#Your dollar provided#Government spending exceeded income#What does the Government owe?#What does the Government own?# |
fsgnz-snap-jun13.pdf (349 KB) pp. 1-8 |
A Snapshot of the 2013 Financial Statements of the Government (Part 1)#
The New Zealand Government:
- 2,500 entities
- $86.6 billion revenue
- $91.0 billion expenditure
- $4.4 billion operating deficit
- $244.4 billion assets
- $174.4 billion liabilities.
The economy continued to grow#
The size of the nominal economy increased 2.1% over the year, driven by an increase in consumer spending and a large increase in investment, particularly residential building.
Annual average % change in GDP
Facts and figures – June Year
- $212.7 billion nominal GDP (up 2.1%)
- 1,360,700 average full time employees 22,275 more)
- $27.42 average hourly rate (up 2.4%)
- 6.7% average unemployment 0.1% higher)
- 0.8% inflation (2.2% in 2012)
Where does the Government's money come from?#
- 67% of revenue was from collection of tax ($3.5 billion more than last year)
- 84% of sales of goods and services from SOEs (eg, NZ Post, Meridian Energy, KiwiRail)
- 14% was from other sources (eg, ACC, EQC, and fire service levies)
Total revenue $86.6 billion
- $3.1 billion increase from last year
- Represents 40.7% of GDP
- Core Crown tax revenue was $58.7 billion
Who pays income tax, and how much?
- Next year 3.4 million New Zealanders are expected to pay tax of $26.4 billion – an average of $7,765 each
Your tax dollar - where was it spent?#
- $70.3 billion core Crown expenses
- 55% of all spending on welfare, education and health
- 23% of all spending by SOEs and Crown entities
Crown expenses
Total Crown expenses were $1.7 billion less than last year as insurance expenses and one-off impairments were higher in 2012.
The peak in 2011 was a result of large Canterbury earthquake costs, which are detailed on the next page.
Your dollar provided...#
$49.7 billion on welfare, health, education
Social welfare
$10.2 billion to provide 612,000 superannuitants with income support and $4.7 billion to 323,000 people receiving the unemployment, sickness, invalids, and domestic purpose benefits.
Health
$11.7 billion of funding to hospitals, which helped provide over 52,000 nurses, 14,000 doctors and 158,000 elective surgeries.
Education
$12.5 billion helped to fund over 200,000 enrolments in early childhood education and over 750,000 school students.
$11.5 billion so far to rebuild Canterbury
- $11.5 billion total cost so far, $9.1 billion of that was recorded in 2011, $1.9 billion last year and $0.5 billion this year
- 70% are the claims costs of EQC, with 423,273 building claims received and approximately $4.4 million paid out per da
- 7,493 red zone properties with over 85% now settled
A Snapshot of the 2013 Financial Statements of the Government (Part 2)#
Government spending exceeded income#
Operating balance before gains and losses (OBEGAL)
$4.4 billion deficit
- Second successive year that the deficit halved
- Deficit was $18.4 billion in 2011 and $9.2 billion in 2012
- Recovery of OBEGAL reflects the recovery in the economy
- Next surplus forecast for 2014/15 (one more year in deficit)
OBEGAL deficit → Capital Spending → Cash deficit → Net Debt
Core Crown net debt
$55.8 billion core Crown net debt
- $5.1 billion increase from last year as the Crown continued to run a cash deficit
What does the Government owe?#
- $100.1 billion
of borrowings, the same as last year. While $15.5 billion of government bonds were issued (at a rate of $304 million per week) $15.4 billion of maturing debt was repaid. Overall net cash from borrowing was $0.1 billion - $37.7 billion
of insurance liabilities, $3.5 billion less than last year, with all the main insurers having lower amounts outstanding this year
Total Crown liabilities
- $6.1 billion less than last year
Total Crown liabilities fell from last year, mostly due to falls in the estimated future cost of the long-term obligations for ACC claims and the Government Superannuation Fund (GSF)
What does the Government own?#
Total Crown assets
- $109.8 billion
of property, plant and equipment (PPE) 55%, or $60 billion, was land and buildings - $106.8 billion
of financial assets with 47% held in New Zealand and 16% in both the USA and Europe - $27.8 billion
of other assets, including inventory and intangible assets