Dr Peter Bushnell
Deputy Secretary to the Treasury
The Financial Statements of the Government of New Zealand for the Eleven Months Ended 31 May 2009 were released by the Treasury today.
The monthly financial statements are compared against monthly forecast tracks based on the 2009 Budget Economic and Fiscal Update.
Results for the eleven months ended 31 May 2009
- Tax revenue was on forecast, but corporate tax receipts were $0.4 billion lower than forecast. This was mainly due to lower-than-forecast provisional tax payments, indicating business profitability in the current year is weaker than expected.
- We are not seeing any significant benefit payment variances at this stage and overall Core Crown expenditure was $0.4 billion lower than forecast.
- The Operating Balance Before Gains and Losses (OBEGAL) was a deficit of $1.2 billion ($0.4 billion lower than the forecast $1.6 billion deficit) due mainly to the core Crown expenditure variance mentioned above.
- The operating balance was a deficit of $7.2 billion ($1.2 billion lower than the forecast $8.4 billion deficit). This variance was mainly due to:
- The NZS Fund and ACC have reported higher-than-forecast investment gains of $1.2 billion and $0.5 billion (respectively) in April and May and although they remain in a loss position for the year-to-date, their recent results contributed to the favourable operating balance variance as at 31 May.
- The investment gains were partly offset by $0.7 billion of negative valuation movements in financial assets and financial liabilities held by the Reserve Bank and NZ Debt Management Office (NZDMO).
- The residual cash deficit was $1.0 billion lower than forecast due mainly to a delayed IMF Reserve transaction payment and funding returned from the NZ Fast Forward Fund earlier than expected.
- Net debt1 was close to forecast as negative valuation movements in financial assets and financial liabilities held by the Reserve Bank and NZDMO were partially offset by a lower-than-expected residual cash deficit.
1 Net core Crown debt excluding NZS Fund, student loans and other advances.
|Year to date||Full Year|
|Core Crown revenue (excl. NZS Fund)||53,768||53,799||(31)||(0.1)||58,392|
|Core Crown expenses||55,368||55,855||487||0.9||62,363|
|NZS Fund operating balance||(2,817)||(3,339)||552||(15.6)||(3,260)|
|Core Crown residual cash||(7,135)||(8,180)||1,045||12.8||(8,458)|
|as a percentage of GDP||22.8%||23.7%||24.8%|
|as a percentage of GDP||8.7%||8.4%||8.7%|
|Net debt (incl. NZS Fund)||3,874||2,581||(1,293)||50.1||3,814|
|as a percentage of GDP||2.2 %||1.4 %||2.1 %|
|Net gains/(losses) and other items||(5,952)||(6,690)||738||(6,387)|
- For the purposes of this indicator, the NZS Fund is treated as a third party (i.e. its revenue is not included but the tax it pays is).
- Using GDP for the year ended 31 March 2009 of $179,912 million (Source: Statistics New Zealand).
- Using forecast GDP for the year ended 30 June 2009 of $178,523 million (Source: Treasury).
- Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
- Net core Crown debt less student loans and other advances.
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