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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news