Media statement

Financial Statements of the Government of New Zealand for the Seven Months Ended 31 January 2007

Publication type:
Media statement
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Current
Issue date:
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The Treasury
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The Treasury
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News/media
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© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Last updated:

Dr Peter Bushnell
Deputy Secretary to the Treasury

The Financial Statements of the Government of New Zealand for the seven months ended 31 January 2007 were released by the Treasury today.

The 31 January 2007 monthly financial statements are compared against updated monthly forecast tracks based on the 2006 Half Year Economic and Fiscal Update.

 

$ million January 2007
Actual
YTD		 January 2007
Forecast
YTD		 Variance
$m		 HYEFU June
2007
Forecast		 June
2006
Actual
Residual cash 574 (242) 816 107 2,985
Operating balance 5,575 4,309 1,266 6,260 11,473
OBERAC 4,427 4,309 118 5,768 8,648
Gross sovereign-issued debt 36,096 37,099 (1,003) 37,867 35,461
% of GDP 22.9 23.5 (0.6) 23.7 22.6
Net core Crown debt 6,676 7,065 (389) 6,382 7,745
% of GDP 4.2 4.5 (0.3) 4.0 4.9
Net core Crown debt with NZS Fund assets (5,066) (4,336) (730) (6,271) (2,116)
% of GDP (3.2) (2.1) (0.5) (3.9) (1.3)
Net worth 87,353 75,767 11,586 77,718 71,403

The following table outlines the key variances and their likely impact:

 

Item/indicator Variance Key drivers Impact on year end outturn
Tax Revenue -$0.1 billion    
Net investment income (major contributor to the Operating Balance variance) +$1.2 billion
  • Largely unrealised gains on investment held by the
    • NZSF ($0.5 billion)
    • ACC ($0.3 billion)
    • GSF ($0.1 billion), and
  • Higher than forecast foreign exchange gains ($0.3 billion)
 Net investment returns are looking positive, however in the short term they can be volatile
Investments returns are retained by these entities and are not available for redistribution
Core Crown expenditure - $0.2 billion
  • Delays in departmental spending
 Departments expect that the majority of the delays in spending will catch up by year end
OBERAC + $0.1 billion   Broadly in line with forecast
GSID - $1.0 billion
  • Settlement cash levels are higher than forecast by $0.8 billion, offset by reductions of around $2.0 billion in Reserve Bank’s other lending facilities and DMO borrowing
 Settlement cash levels have decreased from last month by $0.4 billion. Uncertainty remains over long term levels and volatility
Net Worth + $ 11.6 billion
  • Revaluation of the rail network ($10.3 billion), and
  • Operating balance impact of the higher than expected net investment returns and delays in departmental spending ($1.3 billion)
 Ongoing increase in net worth and $140 million per annum depreciation on rail network reducing the operating balance
Residual cash + $0.8 billion
  • Funding for the purchase of Reserve Bank reserves in the forecast not taking place ($0.5 billion)
  • Delays in departmental spending on both operating and capital payments
 This forecast increase in reserves funding will not take place

ENDS

 

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