Formats and related files
Contents#
Browse Section/Chapter | Download/Page Range |
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The economy#Where does the Government's money come from?#How was the money spent?#OBEGAL returns to surplus#Capital spending increases core Crown net debt#The Crown balance sheet#Balance sheet composition# |
fsgnz-snap-jun15.pdf (600 KB) pp. 1-8 |
The 2015 Snapshot [of the Financial Statements of the Government] (Part 1)#
The economy#
Real gross domestic product growth annual average rate was 3.0% mainly due to robust growth in construction, household consumption and tourism.
In current dollar terms, the value of output increased 2.8% in the June 2015 year, down from 8.1% growth in the previous June year.
- Annual average % change in GDP
Facts and figures – June year (compared to 2014)
- $240.6 billion nominal GDP (up 2.8%)
- $217.5 billion real GDP (up 3.0%)
- $67.6 billion export receipts (up 0.8%)
- 1,443,700 average full time employees (44,600 more)
- $28.79 average hourly rate (up 2.4%)
- 5.7% average unemployment (0.3% lower)
- 0.6% annual average inflation (0.9% lower)
Where does the Government's money come from?#
- Total revenue: $95.0b (39.5% of GDP)
- 70% of revenue was from collection of tax ($5.1 billion more than last year)
- 84% of sales of goods and services were from SOEs (eg, NZ Post and listed companies)
- 13% of total revenue was from other sources (eg, ACC, EQC, and fire service levies)
- $5.8 billion increase from last year
- Represents 39.5% of GDP
- Core Crown tax revenue was $66.6 billion
- Who pays income tax, and how much?
- Next March tax year 3.6 million New Zealanders are expected to pay tax of $29.3 billion – an average of $8,138 each
How was the money spent?#
- Total expenses: $94.3b (39.2% of GDP)
- $72.4 billion core Crown Expenses increased by $1.2 billion since last year
- 23% of all spending was by SOEs and Crown Entities
$51.5 billion was spent on welfare, health and education
Social welfare
$11.6 billion to provide 665,000 super annuitants with income support and $4.4 billion to 302,000 people receiving Jobseeker Support and Emergency Benefit, Sole Parent Support and Supported Living Payment.
Health
$11.4 billion of funding to District Health Boards, which contributed to a range of hospital and community-based services, including around 167,000 elective surgeries and 92.9% of eight-month-olds being immunised.
Education
$12.9 billion helped to fund 96.1% participation in early childhood education, 81.2% of 18 year olds to achieve NCEA Level 2 or equivalent.
OBEGAL returns to surplus#
- Operating balance before gains and losses (OBEGAL)
- $0.4 billion surplus
- Growth in tax revenue has outpaced growth in expenditure
- First surplus since 2008
- Core Crown tax revenue was $5.1 billion more than last year
- Core Crown expenses increased $1.2 billion from last year
Reconciliation to Budget 2015 | $b |
---|---|
Forecast OBEGAL deficit | (0.7) |
Higher core Crown taxes | 0.6 |
Lower core Crown expenses | 0.5 |
Actual surplus | 0.4 |
- Core Crown tax revenue was 0.8% higher than forecast
- Core Crown expenses were 0.7% less than forecast
- While core Crown tax and core Crown expenses were close to forecast (within 1%), combined they had a significant impact on OBEGAL
The 2015 Snapshot [of the Financial Statements of the Government] (Part 2)#
Capital spending increases core Crown net debt#
- OBEGAL surplus contributed to core Crown operating cash surplus of $1.6 billion
- $4 billion of capital spending (offset by $0.6 billion from the second Meridian instalment)
- Overall cash deficit of $1.8 billion
- Core Crown net debt
$60.6 billion core Crown net debt
- $0.7 billion increase from last year due to continuing cash deficits
- Relatively flat as a percentage of GDP (0.4% 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 $279 billion
- Total liabilities were $186 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 $121.7 billion
$138.8 billion of social sector assets (eg, schools, hospitals and social housing) have increased by $5.6 billion from last year.
Social sector liabilities were similar to last year at $17.1 billion, a $0.1 billion increase. - Financial sector net worth -$49.9 billion
$87.4 billion of financial sector assets with a $12.8 billion increase from last year.
$137.3 billion of financial sector liabilities, an increase of $7.7 billion from last year. - Commercial sector net worth $20.4 billion
$52.5 billion of commercial sector assets (mainly SOEs) with a $3.5 billion increase from last year.
$32.1 billion of commercial sector liabilities (including Kiwibank), an increase of $2.6 billion from last year.