Overview of the government's finances including financial reporting for the government as a whole, the government's revenue and expenditure, its assets and liabilities and its fiscal strategy.
Advising the government on its finances is a core role of the Treasury. The Treasury is responsible for establishing and maintaining controls to ensure that all government financial transactions are within statutory authority, and that use of public money is properly recorded. The Treasury also prepares forecasts, including economic and fiscal updates as part of the Budget process.
Government finances take into account all of the issues any business does, including revenue and expenditure, and assets and liabilities. And like any business, the government must also prepare financial statements at regular intervals (see month end and year end financial statements). These statements are prepared by the Treasury and cover all government entities, including Ministers of the Crown, Offices of Parliament, departments, crown entities, state-owned enterprises, the Reserve Bank of New Zealand and New Zealand Superannuation Fund. A full list of government reporting entities can be found in the Notes to the Financial Statements, in the section titled Government Reporting Entity. From 1 July 2014 the Financial Statements of the Government are prepared in accordance with Public Benefit Entity accounting standards.
In this section of the website we introduce:
- The requirements and standards for financial reporting by the government that lead to the publication of the Financial Statements of the Government of New Zealand;
- Treasury-published information on the government's assets and liabilities;
- How the government manages its finances within New Zealand's public financial management system; and
- Information on the fiscal strategy of the government and its long-term fiscal position.
The Treasury's Role
The Treasury is responsible for establishing and maintaining controls to ensure that all government financial transactions are within statutory authority, and that all use of public money is properly recorded.
The Treasury's role in managing the government's finances can be broken into three broad areas:
- Preparing the Financial Statements of the Government in accordance with the Public Sector Finance Act 1989;
- Preparing guidance for departments and entities on State sector performance; and
- Preparing forecasts (Economic and Fiscal Updates) as part of the annual Budget process.