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

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news