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

 

Local authorities' spending on core services declines

Local authorities' spending on core services declines for the first time

23 July 2014

In the year to June 2013, local authorities’ spending on core services (operating expenditure) declined from $8.5 billion to $8.3 billion, Statistics New Zealand said today.

“This is the first fall in operating expenditure in the 20-year history of the survey,” local authorities statistics manager Michele Lloyd said.

Meanwhile, local authorities’ operating income increased 1.0 percent, to $7.9 billion. Income from rates increased $90 million in 2013, the lowest increase since the global financial crisis in 2009. Most councils showed increases but these were offset by a 3.4 percent decrease in Auckland Council's income from rates (down to $1.3 billion).

In the year ended June 2013, local authorities’ operating deficit was $392 million, an improvement from the June 2012 year deficit.

Once capital transactions are considered, the operating balance of local government is a surplus of $1.0 billion, up $524 million on the 2012 year surplus and the highest since the financial crisis.

Despite this surplus, government finance statistics showed local government needed to borrow more in 2013 to finance additional infrastructural work. Net borrowing was $1.1 billion in the June 2013 year.

Local government's net worth was $101.3 billion at 30 June 2013, up 1.7 percent on the June 2012 year.

The statistics released today are also available for each local authority, including aggregated statistics for local government transactions for the year ended June 2013.

For more information about these statistics:
• Visit Local Authority Financial Statistics: Year ended June 2013
• Visit Government Finance Statistics (Local Government): Year ended June 2013

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>