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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news