Dr Peter Bushnell
Deputy Secretary to the Treasury
The Financial Statements of the Government of New Zealand for the three months ended 30 September 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 three months ended 30 September 2009
- Core Crown tax revenue at $11.9 billion was $1.1 billion lower than forecast. This follows on from the trend reported in the June 2009 annual financial statements. The majority of this variance was in relation to corporate tax revenue which was $0.9 billion under forecast. Lower-than-expected 2009 tax year profits coupled with assumptions that changes to provisional tax due dates would have on tax seasonal patterns that did not eventuate make up the bulk of this variance.
- This lower tax revenue was the main contributor to an operating balance before gains and losses deficit of $2.0 billion ($0.9 billion larger than the $1.1 billion deficit forecast).
- Higher-than-forecast investment returns reported by the NZS Fund and ACC ($1.4 billion and $0.7 billion respectively) offset the tax result meaning the operating balance deficit was slightly better than forecast at $0.2 billion ($0.4 billion lower than the forecast deficit of $0.6 billion).
- Gross debt at $48.5 billion was $1.4 billion higher than forecast (with a corresponding increase in financial assets) due to an increase in IMF reserve liabilities.
- Other key indicators were largely on target.
|Year to date||Full Year|
|Core Crown revenue (excl. NZS Fund)||13,236||14,090||(854)||(6.1)||56,374|
|Core Crown expenses||15,473||15,537||64||0.4||65,282|
|NZS Fund operating balance||1,253||253||1,000||395.3||1,065|
|Core Crown residual cash||(3,292)||(3,610)||318||8.8||(11,865)|
|as a percentage of GDP||26.9%||26.1%||29.1%|
|as a percentage of GDP||11.8%||11.6%||8.8%|
|Net gains/(losses) and other items||1,847||547||1,300||237.7||2,010|
- 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 30 June 2009 of $180,210 million (Source: Statistics New Zealand).
- Using forecast GDP for the year ended 30 June 2010 of $175,051 million (Source: Treasury).
- Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
- Net core Crown debt excluding student loans and other advances.
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