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Media statement

Financial Statements of the Government of New Zealand for the Ten Months Ended 30 April 2007

Issue date: 
Friday, 8 June 2007
Status: 
Current
Corporate author: 
View point: 

Dr Peter Bushnell
Deputy Secretary to the Treasury

The Financial Statements of the Government of New Zealand for the ten months ended 30 April 2007 were released by the Treasury today.

These financial statements have been prepared in accordance with Generally Accepted Accounting Practice, which encompasses approved financial reporting standards that will be applied by the Crown until 30 June 2007. For financial statements beginning on or after 1 July 2007, New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) will be applied.

The 30 April 2007 monthly financial statements are compared against updated monthly forecast tracks based on the 2007 Budget Economic and Fiscal Update.

 

$ million April 2007
Actual
YTD
April 2007
Forecast
YTD
Variance
$m
HYEFU June
2007
Forecast
June
2006
Actual
Residual cash 1,147 893 254 1,720 2,985
Operating balance 6,777 7,157 (380) 6,568 11,473
OBERAC 6,986 7,157 (171) 7,699 8,648
Gross sovereign-issued debt 38,171 37,909 262 37,217 35,461
% of GDP 24.2 24.0 0.2 23.3 22.6
Net core Crown debt 5,014 5,251 (237) 4,612 7,745
% of GDP 3.2 3.3 (0.1) 2.9 4.9
Net core Crown debt with NZS Fund assets (7,439) (7,401) (38) (8,306) (2,116)
% of GDP (4.7) (4.7) (0.0) (5.2) (1.3)
Net worth 88,538 88,917 (379) 88,460 71,403

The following table outlines the key variances for the year to 30 April 2007:

 

Item/indicator Variance Key drivers
Tax Revenue - $0.2 billion PAYE and GST timing issues
Net of sales of goods and services and operating expenses + $0.1 billion Mainly due to lower sales by electricity companies, offset by lower operating expenses
Net investment income - $0.2 billion Lower than forecast unrealised gains on NZSF investments ($0.7 billion), offset by NZSF foreign exchange losses being less than forecast by $0.5 billion
Core Crown expenditure (excluding net foreign exchange gains/losses) + $0.1 billion Delays in actual departmental spending of $0.3 billion, offset by top-down adjustment in forecast of $0.2 billion
OBERAC - $0.2 billion Mainly due to lower tax revenue, offset by delays in departmental spending
GSID + $0.3 billion Reductions in DMO issuance of Treasury Bills and Government Stock ($0.2 billion), offset by settlement cash level being higher than forecast by $0.4 billion
Net Worth - $0.4 billion Operating balance impact of the lower than expected net investment returns and tax revenue, offset by delays in departmental spending
Residual cash + $0.3 billion Delays in departmental spending on operating ($0.2 billion in cash terms), capital ($0.2 billion), offset by top-down adjustment allocation

 

ENDS

Officer for Enquiries

Kamlesh Patel | Macroeconomic Group
Tel: +64 4 471 5094
Fax: +64 4 471 5956
Email: kamlesh.patel@treasury.govt.nz
Last updated: 
Tuesday, 30 October 2007