Snapshot

A Snapshot of the 2013 Financial Statements of the Government

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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

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?#

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?

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?#

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

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

Total cost to date 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)

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

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?#

What does the Government owe - Crown liabilities.
  • $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

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?#

What does the Government own?

Total Crown assets

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