Deputy Secretary to the Treasury
The Financial Statements of the Government of New Zealand for the ten months ended 30 April 2010 were released by the Treasury today.
The monthly financial statements are compared against monthly forecast tracks based on the 2010 Budget Economic and Fiscal Update (Budget Update) published in May 2010.
Results for the ten months ended 30 April 2010:
- Core Crown tax revenue was largely on target at $74 million (0.2%) higher than forecast. However, there were some ‘unders’ and ‘overs’ contributing to this result:
- Other individuals tax was $106 million (4.7%) higher than forecast offset by corporate tax revenue which was $108 million (1.9%) lower than forecast; and
- Customs and excise duties were $96 million (3.3%) higher than forecast due to a large increase in tobacco imports in April.
- Core Crown expenses were $416 million (0.8%) lower than forecast across a number of categories. Impairments of sovereign receivables, social assistance benefits and personnel expenses all came in under forecast ($73 million, $105 million and $54 million respectively).
- Overall this led to an operating balance before gains and losses deficit that was $636 million smaller than expected.
- When the impact of gains and losses is incorporated, the operating balance deficit was $820 million smaller than forecast at $1,388 million.
- By contrast, the residual cash deficit was $275 million larger than forecast. Lower than forecast 2008/09 terminal tax receipts and petroleum fuels excise receipts contributed to this result. Offsetting these were higher than forecast NZS Fund tax receipts due to better than expected forecast investment performance in April.
While core Crown expenses were $416 million lower than forecast, at this stage cash payments were in line with forecast.
As a result the residual cash deficit was higher than expected despite the smaller operating balance deficit.
- This higher residual cash deficit, along with valuation losses, resulted in a net debt position that was $458 million higher than forecast at $27,787 million (15.0% of GDP).
|Year to date||Full Year|
|Core Crown tax revenue||41,497||41,423||74||0.2||50,652|
|Core Crown revenue||46,257||46,190||67||0.1||56,406|
|Core Crown expenses||52,309||52,725||416||0.8||64,791|
|Core Crown residual cash||(9,830)||(9,555)||(275)||(2.9)||(9,069)|
|as a percentage of GDP||28.0%||27.8%||28.4%|
|as a percentage of GDP||15.0%||14.7%||14.1%|
|Operating balance before gains and losses||(5,194)||(5,830)||636||10.9||(6,927)|
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