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Snapshot

A Snapshot of the 2013 Financial Statements of the Government

A Snapshot of the 2013 Financial Statements of the Government

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 2013, it is not intended to be read as a full picture of the New Zealand Government's financial performance or position.

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