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Media statement

Financial Statements of the Government of New Zealand for the Three Months Ended 30 September 2015

Issue date: 
Friday, 6 November 2015
Corporate author: 
View point: 

Paul Helm, Chief Government Accountant

The Financial Statements of the Government of New Zealand for the three months ended 30 September 2015 were released by the Treasury today.  The statements are compared against forecasts based on the 2015 Budget Economic and Fiscal Update (BEFU) published in May.

The operating balance before gains and losses (OBEGAL) was a deficit of $545 million for the three months to 30 September, which was $253 million lower than the expected deficit based on BEFU[1].  This improved result included ACC’s OBEGAL which was $214 million higher than expected due to lower insurance expenses as a result of a decrease in the outstanding claims liability, increase in liable earnings for the current year and higher dividend income than expected.

A period of volatility in equity markets saw the NZS Fund record losses on financial instruments of $1.9 billion, which was $2.4 billion below forecast.  When combined with the OBEGAL result, the operating balance deficit of $2.2 billion was $2.2 billion lower than forecast.

Core Crown tax revenue, at $16.2 billion, was 0.6% or $101 million higher than forecast, with some tax types performing above expectations eg, source deductions and corporate tax, while others performed below, eg, GST.

Core Crown expenses, at $18.5 billion, were close to forecast.

The core Crown residual cash position, at a deficit of $2.1 billion, was $732 million lower than forecast.  This stronger result was mainly due to higher tax receipts as well as lower operating and capital payments than forecast.  Core Crown tax receipts were tracking $424 million above forecast of which a portion related to the tax revenue result above and the remainder was timing related.  This lower-than-forecast cash deficit, together with the lower than forecast opening net debt position, has flowed through to net debt which was $1.9 billion lower than forecast at $62.8 billion (26.1% of GDP).

Higher than expected gross debt of $3.3 billion largely reflected the higher opening gross debt position, along with higher Treasury Bills and derivative liabilities.

At 30 September, total Crown assets were valued at $275.0 billion and liabilities were $185.1 billion while the Crown’s share of net worth stood at $84.1 billion.

  Year to date Full Year
$ million September
Core Crown          
Core Crown tax revenue 16,244 16,143 101 0.6 68,868
Core Crown revenue 17,616 17,427 189 1.1 74,585
Core Crown expenses 18,544 18,510 (34) (0.2) 74,531
Core Crown residual cash (2,053) (2,785) 732 26.3 (4,166)
Gross debt3 87,336 84,061 (3,275) (3.9) 87,162
as a percentage of GDP 36.3% 34.9%     34.9%
Net debt4 62,784 64,729 1,945 3.0 65,597
as a percentage of GDP 26.1% 26.9%     26.3%
Total Crown          
Operating balance before gains and losses (545) (798) 253 31.7  176
Operating balance (2,242) (4) (2,238) 2,990
Net worth attributable to the Crown 84,144 74,850 9,294 12.4 77,812
  1. Using GDP for the year ended 30 June 2015 of $240,571 million (Source: Statistics New Zealand).
  2. Using forecast GDP for the year ended 30 June 2016 of $249,890 million (Source: Treasury).
  3. Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
  4. Net core Crown debt excluding student loans and other advances. Net debt may fluctuate during the year largely reflecting the timing of tax receipts.


  • [1] While the current full year forecast is for an OBEGAL surplus, OBEGAL fluctuates month to month due to the seasonal nature of tax revenue and expense trends.



Officer for Enquiries

Nicky Haslam | Office of the Government Accountant
Tel: +64 4 917 6943
Last updated: 
Monday, 22 February 2016