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

 


BUDGET: NZDMO to lift bond issuance $3B on slow cash surplus

BUDGET: NZDMO to lift bond issuance $3B as return to cash surplus delayed

By Paul McBeth

May 15 (BusinessDesk) - The New Zealand Debt Management Office will lift issuance by $3 billion over the coming four years on a slower forecast return to cash surplus.

The DMO will raise $8 billion in 2014/15, and $7 billion each of next three years, with an extra $1 billion to be issued in 2015, 2017 and 2018, it said in a statement. The office will repay a net $2.2 billion in 2015 and $4.5 billion in 2018, with net issuance of $5.1 billion and $6.8 billion in 2016 and 2017.

The Treasury estimates the government's residual cash balance will return to surplus in 2018, at $710 million, a year later than in the December half-year economic and fiscal update. The forecast shortfall over the four-year horizon of $9.4 billion is up from a previous expectation of $4.4 billion.

The smaller and slower return to a residual cash surplus was due to higher operating allowances and lower tax receipts than forecast, and prompted the increased issuance.

The government's tax take, while rising, has lagged estimates with later than expected corporate annual returns, and lower tobacco excise than anticipated.

Still, the government's net debt is forecast to continue decline relative to gross domestic product, falling to 23.8 percent by 2018 from 27.6 percent as at March 31.

The DMO is planning a 2027 bond and a new inflation-indexed bond in the first half of 2014/15 subject to market condition. The inflation linked bond will make up $3 billion of the 2014/15 issuance.

The office also intends to keep repurchasing the April 2015 nominal bond in the 2015 fiscal year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news