Crown Records Current Account Surplus
Crown Accounts Analysis: Year ended 30 June 2000
The Government recorded an annual surplus of $1,729 million in its current account in the year to June 2000, Statistics New Zealand's latest Crown Accounts analysis shows.
This is the seventh consecutive annual surplus. It is $1,072 million higher than the result for the June 1999 year, but lower than the peak of $4,399 million in 1996.
Total current income for the June 2000 year was $35,029 million, an increase of $1,812 million or 5.5 per cent on the previous year. Taxation revenue made the most significant contribution to this increase, up $1,844 million. This was partly offset by a decrease in profits and dividends received, down $114 million on the June 1999 year.
Direct taxation increased by $1,229 million from $19,963 million in the June 1999 year to $21,192 million: with tax on individuals, up $852 million; company taxes, up $465 million; and withholding tax down $88 million. These increases largely reflect the growth in the economy over this period with increasing rates of employment and wage growth. The Gross Domestic Product grew 4.8 per cent during the June 2000 year, up on the 0.8 per cent growth of the previous year.
Indirect taxes increased by $615 million in the June 2000 year to $11,737 million. This increase was largely a result of a $444 million rise in GST revenue which was driven by retail trade sales, up 6.7 per cent in the year to June 2000. The rise in GST revenue was partly offset by a $33 million decrease in stamp and cheque duty due to the abolition of stamp duty on rural and commercial properties in May 1999.
Current expenditure rose by 2.3 per cent, or $740 million in the June 2000 year, taking the level from $32,560 million in the previous year to $33,300 million. The purchase of the frigate HMNZS Te Mana, worth $631 million, was the main contributor to this increase in expenditure. The frigate cost was partly offset by a decrease of $116 million paid in interest, a result of decreasing net debt levels.
Current transfers in total were also up for the June 2000 year by $229 million or 0.9 per cent. The majority of this was in current transfers to the Government's health and social welfare functions. These were up $107 million and $119 million respectively. The increase in health expenditure is the result of additional funding while the increase in social welfare spending is partly due to the inclusion for the first time of non-earner contributions to the acute accident levy.
Social assistance grants increased by $67 million, up from $14,871 million in the June 1999 year to $14,938 million. There was a small increase in social welfare transfers, up $16 million from the June 1999 year to $11,619 million in the June 2000 year.
After financing current and capital expenditure, the Crown recorded a net lending figure of $928 million in the June 2000 year. The net borrowing figure in the June 1999 year was $223 million.
Ian Ewing Deputy Government Statistician