Dr Peter Bushnell
Deputy Secretary to the Treasury
The Financial Statements of the Government of New Zealand for the eleven months ended 31 May 2007 were released by the Treasury today.
The 31 May 2007 monthly financial statements are compared against updated monthly forecast tracks based on the 2007 Budget Economic and Fiscal Update.
In summary, both residual cash ($0.3 billion or 13.2%) and the operating balance ($0.6 billion or 9.15) are higher than forecast. It is likely that the majority of the variances in these two indicators will remain at year end.
|$ million||May 2007
|Gross sovereign-issued debt||36,385||35,964||421||1.2||37,217||35,461|
|% of GDP||22.3||22.0||0.3||22.6||22.6|
|Net core Crown debt||4,123||4,390||(267)||(6.1)||4,611||7,745|
|% of GDP||2.5||2.7||(0.2)||2.8||4.9|
|Net core Crown debt with NZS Fund assets||(8,758)||(8,250)||(508)||6.2||(8,307)||(2,116)|
|% of GDP||(5.4)||(5.0)||(0.4)||(5.0)||(1.3)|
The following table outlines the key variances for the year to 31 May 2007:
|Tax Revenue||-||In line with forecast.|
|Net investment income||+$0.5 billion||Mainly due to higher than expected investment returns by NZS Fund, ACC and GSF.|
|Core Crown expenditure (excluding net foreign exchange gains/losses)||-$0.1 billion||Delays in actual departmental spending of $0.1 billion.|
|Operating balance||+$0.6 billion||Mainly due to delays in departmental spending, offset by write-down of tax and fines receivables above|
|OBERAC||-$0.2 billion||Mainly due to delays in departmental spending.|
|GSID||-$0.4 billion||Settlement cash levels ($8.2 billion) are higher than forecast by $0.6 billion, offset by a reduction in the issuance of Treasury Bills and Government Stock of $0.2 billion.|
|Net Worth||+$0.6 billion||Operating balance impact of the higher than expected net investment returns and delays in departmental spending.|
|Residual cash||+$0.3 billion||Higher tax receipts of $0.2 billion and delays in departmental cash spending on operating ($0.2 billion) and capital ($0.1 billion). Offset by lower sale of goods receipts ($0.2 billion).|
Officer for EnquiriesKamlesh Patel | Macroeconomic Group
Tel: +64 4 471 5094
Fax: +64 4 471 5956