Dr Peter Bushnell
Deputy Secretary to the Treasury
The Financial Statements of the Government of New Zealand for the five months ended 30 November 2006 were released by the Treasury today.
The 30 November 2006 monthly financial statements are compared against updated monthly forecast tracks based on the 2006 Half Year Economic and Fiscal Update.
|Gross sovereign-issued debt||37,614||36,958||656||37,867||35,461|
|% of GDP||23.8||23.4||0.4||23.3||22.6|
|Net core Crown debt||6,757||6,891||(134)||6,382||7,745|
|% of GDP||4.3||4.4||(0.1)||3.9||4.9|
|Net core Crown debt with NZS Fund assets||(4,393)||(4,095)||(298)||(6,271)||(2,116)|
|% of GDP||(2.8)||(2.6)||(0.2)||(3.9)||(1.3)|
The residual cash of $0.7 billion was in line with forecast.
The operating balance of $3.5 billion was higher than forecast by $0.6 billion. The primary driver was investment income (from NZSF, ACC and EQC), which is retained by the entities. Tax revenue and core Crown expenses were both broadly in line with forecast.
Gross sovereign-issued debt (GSID) of $37.6 billion (23.8% of GDP) was higher than forecast by $0.7 billion. This difference was largely due to a technical timing difference (relating to the difference between the forecast settlement date and the actual trade date of financial instruments for foreign exchange trades, commercial papers and reverse repositions).
Net core Crown debt of $6.8 billion was $0.1 billion lower than forecast, largely as a result of higher than expected net cash flows from operations and issues of circulating currency, offset by slightly higher than forecast net purchases of physical assets.
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