Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Financial Statements of the Government, 9 months to 31/3/13

[Documents:
fsgnz9mthsmar13.pdf
fsgnz9mthsmar13.xls]


6 May 2013

MEDIA STATEMENT

Embargoed until 10.00am, Monday 6 May 2013

Fergus Welsh
Chief Financial Officer
The Treasury

Financial Statements of the Government of New Zealand for the Nine Months Ended 31 March 2013

The Financial Statements of the Government of New Zealand for the nine months ended 31 March 2013 were released by the Treasury today.

These financial statements are the last to be compared against forecasts based on the Half Year Economic and Fiscal Update (HYEFU), released on 18 December 2012.

The Operating Balance before Gains and Losses (OBEGAL) was in deficit by $5.0 billion, which was $273 million lower than forecast largely owing to core Crown tax revenue being $535 million higher than expected. Continuing the pattern of recent months:

• Other individuals tax revenue was $406 million (14.8%) above forecast, likely the result of solid investment incomes, driven by recent strength in equity markets; and

• Source deductions was $187 million (1.1%) above forecast due to a higher effective tax rate. Recent economic data suggests that aggregate labour incomes have been consistent with forecast, but that the composition of the labour force has changed (a decrease in the proportion of low income workers). This change increased the revenue collected because of the progressive nature of the income tax scale.

Core Crown expenses were close to forecast at $52.2 billion. While underspends relating to delays in treaty settlements and New Zealand’s aid programmes were recorded, these were largely offset by higher than expected costs associated with an earthquake-related provision for horizontal infrastructure (wastewater, storm water and freshwater) in Canterbury.

Including net gains, the operating balance was in surplus by $2.5 billion, some $4.5 billion above the forecast deficit, largely owing to significant net investment gains made by the New Zealand Superannuation Fund and ACC ($1.7 billion and $0.7 billion above forecast respectively). In addition, favourable actuarial valuations were recorded on the Government Superannuation Fund’s retirement liability and ACC’s outstanding claims liability of $0.7 billion and $0.6 billion above forecast respectively, driven by discount rate movements and favourable payments/claims experience.

The residual cash deficit was $1.3 billion smaller than expected, mainly reflecting higher than expected tax receipts and underspending on capital programmes.

Gross debt was $1.8 billion below forecast at $84.2 billion (40.2% of GDP), mostly due to the Reserve Bank purchasing $2.7 billion more Government bonds than forecast, reducing the amount of debt owed by the Crown to third parties.

Net debt was $1.5 billion lower than forecast largely reflecting the residual cash result.

 Year to dateFull Year
$ millionMarch
2013
Actual1
March
2013
HYEFU
Forecast1
Variance
to HYEFU
$m
Variance
to HYEFU
%
June
2013
HYEFU
Forecast2
Core Crown
Core Crown tax revenue41,864 41,3295351.357,376
Core Crown revenue45,832 45,2975351.262,939
Core Crown expenses52,168 52,223550.171,998
Core Crown residual cash(7,632)(8,948)1,31614.7(9,782)
Gross debt384,243 86,0141,7712.180,176
as a percentage of GDP40.2%41.1% 37.1%
Net debt458,483 59,9361,4532.459,998
as a percentage of GDP27.9%28.6% 27.8%
Total Crown
Operating balance before gains and losses(4,950)(5,223)2735.2(7,340)
Operating balance2,518 (1,979)4,497227.2(3,275)
Net worth attributable to the Crown61,900 57,3774,5237.956,285

1 Using GDP for the year ended 31 December 2012 of $209,324 million (Source: Statistics New Zealand)
2 Using forecast GDP for the year ended 30 June 2013 of $216,048 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


ENDS

[Documents:
fsgnz9mthsmar13.pdf
fsgnz9mthsmar13.xls]

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Eggs-it Strategy: Countdown Programme For Free Range And Barn Launches

Countdown has today launched an Egg Producer Programme to support free range and barn egg farmers to increase the supply available for Countdown stores and our customers. More>>

ALSO:

LVRs: Banks Get An Extra Month To Meet New Lending Restrictions

The Reserve Bank won't impose new lending restrictions for highly-leveraged investment purchases until the start of October, giving lenders an extra month to clear their backlog of pre-approvals. More>>

ALSO:

Commerce Commission: Charges Against Youi Insurance

The Commerce Commission has filed charges in the Auckland District Court against insurance firm Youi NZ Pty Limited, alleging it employed misleading sales techniques when attempting to sell policies to consumers who were only seeking a quote. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news