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

 


Financial Statements of the NZ Govt to 31 May 2014

[Full release and financial statements: mediafsgnz11mthsmay14.pdf]

8 July 2014
MEDIA STATEMENT
Embargoed until 10.00am, Tuesday 8 July 2014
Fergus Welsh
Acting Chief Government Accountant
The Treasury

Financial Statements of the Government of New Zealand for the Eleven Months Ended 31 May 2014

The Financial Statements of the Government of New Zealand for the eleven months ended 31 May 2014 were released by the Treasury today. These statements are compared against forecasts based on the Budget and Fiscal Update (BEFU), released on 15 May 2014.

The operating balance before gains and losses (OBEGAL) was in deficit by $1.1 billion, which was $332 million more than expected. Core Crown expenses of $64.2 billion were 0.1% less than forecast and core Crown tax revenue of $56.5 billion was 0.8% less than forecast.

Core Crown tax revenue was $2.5 billion or 4.6% higher than in the year-earlier eleven month period. This year-on-year growth reflected positive macroeconomic conditions leading to growth largely in source deductions and GST.

While tax revenue has increased year-on-year, the result was $459 million below forecast with both GST and corporate tax being less than expected ($238 million and $120 million respectively).

The GST revenue variance mostly reflected lower than forecast domestic consumption growth, although some of the variance is expected to have reversed in the month of June.

The corporate tax variance was partially due to lower than forecast terminal tax assessments and the timing of provisional tax assessments differing from forecast.

It is too early to determine the likely impact of these results on the current and future financial years as both downside and upside risks exist.

The Treasury’s next set of economic and fiscal forecasts (Pre-election Economic and Fiscal Update) will be published on 19 August. It will include updated assessments of macro-economic conditions and fiscal forecasts including updates on the expected tax outturn for the fiscal year that ended on 30 June 2014 and the following four financial years.

The operating balance (including gains and losses) was in surplus by $4.3 billion.

Continued strength in equity markets saws gains recorded on financial investments of $4.8 billion, which was $1.4 billion ahead of forecast. These gains were somewhat offset by an increase in ACC’s insurance liability due to recent decreases in short-term discount rates.

The core Crown residual cash deficit was $3.8 billion, $398 million more than forecast due to lower than forecast tax receipts. These lower tax receipts also flowed through to core Crown net debt which stood at $59.5 billion, equal to 26.2% of GDP. At 31 May, total Crown assets were valued at $251.0 billion and liabilities were $174.3 billion and the Crown’s share of net worth strengthened from a month earlier to stand at $71.3 billion.

[Full release and financial statements: mediafsgnz11mthsmay14.pdf]

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news