Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Cash flow on target – Cullen

Cash flow on target – Cullen

The Crown Financial Statements for the six months ended December show a net cash flow of $91 million which, Treasury advises, is broadly on track to achieve their full year forecast of $1.4 billion.

Finance Minister Michael Cullen said the projected $1.4 billion was needed to help fund the borrowing requirement of $2.2 billion over the next two years given that the December Economic and Fiscal Update was forecasting cash deficits in 2005-06 and 2006-07 of around $700 million and $1.55 billion respectively.

“The cash flow is an important indicator as it shows the balance after all spending, capital and operational, has been accounted for and represents either the amount available to the government for the repayment of debt or the amount that has to be borrowed.

“To that extent, it provides a check to the operating balance and the OBERAC both of which contain non-cash components which do not bear directly on the government’s bottom line.

“Both are, for example, running above December forecasts [the operating balance by $936 million; the OBERAC by $500 million] but neither is expected to materially improve the government’s final cash position or ability to fund its borrowing programme.

“$200 million comes from the surpluses of State Owned Enterprises and other Crown entities; money that will be left with the individual entity to further that entity’s goals rather than skimmed off by the government.

“A further $180 million reflects delayed spending in the health sector but this ‘gain’ is expected to be temporary as the spending is still due to occur this year.

“And the operating balance also encompasses investment gains by Crown financial institutions such as the New Zealand Superannuation Fund, the Government Superannuation Fund and the Accident Compensation Corporation. These funds are to protect the future security of New Zealanders both in retirement and in the event of an accident. They will not be appropriated by the government for other uses.

“Significant confusion surrounds the way the government accounts work. I hope by focussing more on the cash position, which is closer to the way households and individuals work in managing their finances and determining their discretionary spending, to shine a little more light on the subject,” Dr Cullen said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Oprah as a Presidential Hopeful

Oprah for President…That was one of those summer silly season stories, right ? Maybe not.

On the morning after the Golden Globes Awards ceremony where she delivered That Speech (“I want all the girls watching here now to know that a new day is on the horizon!”) a lot of people seem to have woken up in the cold light of day with a vision of President Winfrey still dancing in their heads.

Oprah’s presidential run may have legs…More


Gordon Campbell: On Jim Anderton
For anyone born after 1975, it is hard to grasp just how important a figure Jim Anderton was, for an entire generation.
During the mid to late 1980s, Anderton was the only significant public figure of resistance to the Labour government’s headlong embrace of Thatcherism...More>>


Gong Time: New Year's Honours List

Jacinda Ardern today congratulated the 179 New Zealanders named on the 2018 New Year’s Honours List.

“Although this list was compiled and completed by the last government, it is a pleasure to welcome in the New Year by recognising exceptional New Zealanders,” Jacinda Ardern said.

“As an Aunty, I love reading books to my nieces, so it’s lovely to congratulate Joy Cowley, who is made a member of the Order of New Zealand today....More
Full list

Roads: National launches bid to save highway projects

The National Party has launched a series of petitions aimed at saving regional highway projects at risk because of the Government’s obsession with Auckland trams…More>>


Medical Cannabis: Bill Introduced to “ease suffering”

Health Minister Dr David Clark says making medicinal cannabis more readily available will help relieve the suffering of people who are dying in pain More>>


Campbell: On The Quest For Zero Net Carbon Emissions
Some would querulously ask, zero net carbon emissions by 2050 – while others would say, why not?


CPAG Report: The Further Fraying Of The Welfare Safety Net

New Zealand’s welfare system has undergone a major transformation during the past three decades. This process has seriously thwarted the original intent of the system, which was to provide a decent standard of living for all New Zealanders in times of need... More>>





Featured InfoPages