Crown Accounts Analysis: Year ended 30 June 2001

Crown Records Current Account Surplus

The New Zealand Government recorded an annual surplus of $2,882 million in its current account for the year ended June 2001, Statistics New Zealand's latest Crown Accounts analysis shows.

This is the eighth consecutive annual surplus. It is $1,743 million higher than the result for the June 2000 year, but lower than the peak of $4,474 million in 1996.

Total current income for the June 2001 year was $37,850 million, an increase of $2,681 million or 7.6 per cent on the previous year. Taxation revenue made the most significant contribution to this increase, up $2,616 million. This was partly offset by a decrease in dividends received, down $107 million on the June 2000 year.

Income taxation increased by $2,328 million from $21,192 million in the June 2000 year to $23,520 million: with tax on individuals, up $1,314 million; company taxes, up $673 million; and withholding tax up $342 million. These increases reflect both the growth in the economy over the year (Gross Domestic Product grew 2.3 percent in the year to June 2001), and the increased tax rate to 39 per cent for personal incomes over $60,000 pa.

Total taxes on production and imports increased by $288 million in the June 2001 year to $12,026 million. This increase was largely a result of a $192 million rise in GST revenue.

Total current outlays rose by 2.8 per cent, or $939 million in the June 2001 year, taking the level from $34,030 million in the previous year to $34,969 million. If the purchase of the frigate HMNZS Te Mana ($631 million) was removed from the June 2000 figures, the increase in total current outlays for the June 2001 year would have been 4.7 per cent or $1,570 million.

Increases in Crown spending on health and social welfare contributed most to this increase in current expenditure. Current outlays on health rose by $526 million to $6,724 million, while social welfare spending was up by $357 million to $13,568 million. The increase in health expenditure was the result of additional funding, while the increase in social welfare spending was related to the restoration of New Zealand superannuation rates to 65 per cent of the average wage and the indexation of benefits.

Debt servicing costs rose by $121 million or 4.8 per cent, in the latest June year, to a level of $2,631 million.

After financing current and capital expenditure, the Crown recorded a net lending figure of $2,505 million in the June 2001 year. This is $1,729 million higher than the net lending figure of $776 million in the June 2000 year.

ENDS