Parliament

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

 

Financial Statements of the Government of New Zealand


31 October 2018


Financial Statements of the Government of New Zealand for the three months ended 30 September 2018

The Financial Statements of the Government of New Zealand for the three months ended 30 September 2018 were released by the Treasury today. The statements are compared against forecasts based on the 2018 Budget Economic and Fiscal Update (BEFU 2018) published on 17 May 2018.

Core Crown tax revenue at $19.0 billion was in line with the BEFU 2018 forecast. Corporate tax revenue was below forecast by $0.3 billion (12.3%), mainly due to 2018 income tax assessments lodged since June, indicating taxable profits in the 2018 tax year were lower than forecast. The corporate tax revenue result should not be an indicator of growth or otherwise in recent corporate profitability. The less-volatile receipts measure of corporate tax is on forecast and 8.2% up on the same period last year.

Core Crown expenses of $21.2 billion were $0.2 billion (1.0%) below budget. This variance was largely due to the Working for Family Tax Credit being lower than expected and a lower than forecast sovereign receivables impairment.

The operating balance before gains and losses (OBEGAL) was close to forecast, at a $0.3 billion deficit. Tax revenue in the first quarter of the year tends to be less than what is recognised over the rest of the year, while expenses are generally more evenly spread across the year. As a result we expect the deficit reported in the September Financial Statements to reverse in the coming months.



When gains and losses are added to the OBEGAL result, the operating balance was a $1.1 billion deficit, $1.6 billion less than forecast. Net investment gains of $1.5 billion were recorded offset by net losses on non-financial instruments of $2.3 billion.

Core Crown residual cash was a deficit of $2.4 billion, $0.3 billion higher than the deficit forecast.

Net core Crown debt was $60.4 billion (20.9% of GDP) at the end of September 2018, $2.2 billion less than forecast. The lower than expected net debt is largely due to a stronger opening position, from the 30 June 2018 result (which was $2.9 billion less than forecast). This was partially offset by the residual cash variance of $0.3 billion.

Net worth attributable to the Crown (NWAC) was $129.3 billion, $10.6 billion higher than forecast at BEFU 2018. The majority of this variance relates to property, plant and equipment revaluations increasing NWAC by $10.7 billion at 30 June 2018.

Key indicators for the three months ended 30 September 2018 compared to BEFU 2018

$ million Year to date Full Year
September 2018
Actual1
September 2018
BEFU 2018
Forecast1
Variance2
BEFU 2018
$m
Variance
BEFU 18
%
June 2019
BEFU 18
Forecast3

Core Crown
Core Crown tax revenue 19,012 19,121 (109) (0.6) 83,901
Core Crown revenue 20,831 20,896 (65) (0.3) 90,965
Core Crown expenses 21,156 21,379 223 1.0 86,720
Core Crown residual cash (2,380) (2,078) (302) (14.5) (3,875)
Gross debt4 88,879 87,415 (1,464) (1.7) 81,853
as a percentage of GDP 30.7% 30.2% 26.9%
Net debt5 60,436 62,682 2,246 3.6 64,204
as a percentage of GDP 20.9% 21.7% 21.1%
Total Crown
Operating balance before gains and losses (343) (279) (64) (22.9) 3,737
Operating balance (1,069) 483 (1,552) (321.3) 6,773
Total borrowings 115,407 116,715 1,308 1.1 112,890
Net worth attributable to the Crown 129,251 118,681 10,570 8.9 124,994
1. Using the most recently published GDP (for the year ended 30 June 2018) of $289,293 million (Source: Statistics New Zealand).
2. Favourable variances against forecast have a positive sign and unfavourable variances against forecast have a negative sign.
3. Using BEFU 2018 forecast GDP for the year ending 30 June 2019 of $304,591 million (Source: The Treasury).
4. Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills.
5. Net core Crown debt excluding student loans and other advances. Net debt may fluctuate during the year largely reflecting the timing of tax receipts.

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Mosque Attack: No Mention Of Right-Wing Threat In 10 Years Of GCSB/SIS Docs


Jane Patterson for RNZ: There is not one specific mention of the threat posed by white supremacists or right-wing nationalism in 10 years of public documents from the Security Intelligence Service or the GCSB. More>>

Two Minute Silence Friday: Auckland Mosques Opening Their Doors To All
Mosques in the four corners of Auckland will open their doors on Friday night for people of all faiths to gather in remembrance of the 50 lives lost in the Christchurch shootings. More>>

Parliament's Condolences: PM's Statement On Christchurch Mosques Terror Attack
Al salam Alaikum. Peace be upon you. And peace be upon all of us.
Mr Speaker the 15th of March will now forever be a day etched in our collective memories... More>>

Gordon Campbell: On Why The Government Shouldn't Run The Christchurch Massacre Inquiry
At Cabinet yesterday, the promised changes to our gun laws cleared their first hurdle. According to PM Jacinda Ardern, Cabinet agreed collectively “in principle” on a set of proposals to change New Zealand’s gun laws... Yesterday, Ardern also announced an inquiry into the background to the mosque attacks and into the role played by the SIS, GCSB, Police, Customs, and Immigration. More>>

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK
For the Latest: Scoop Search - Christchurch
 

Gordon Campbell: On The School Climate Strike

Locally, the school strike has won a ton of support for bringing climate change to the fore. Yet the strikers don't want mere expressions of support. They want action. More>>

ALSO:

"Grabbed And Struck In The Face": Greens Co-Leader Attacked While Walking To Work

Green Party co-leader James Shaw was the victim of an unprovoked attack when he was walking to work in Wellington. More>>

ALSO:

████████ ████ ███: Latest OIA Statistics Released

The latest statistics cover 110 agencies that collectively completed 18,106 official information requests between July and December 2018, a 16.4% increase on the 15,551 requests for the previous six months. More>>

ALSO:

'Hit And Run' Inquiry: New Legal Action Over Secrecy

The lawyer representing the Afghan villagers in the inquiry into Operation Burnham has launched legal proceedings calling for a judicial review in the investigation. More>>

ALSO:

From Hydro Plan To...: Mokihinui River Land To Join Kahurangi National Park

A total of 64,400 hectares of conservation land in the Mokihinui River catchment on the West Coast north of Westport, including 15 km of riverbed, is being added to Kahurangi National Park. “Adding this area, roughly half the size of Auckland City, to Kahurangi is the largest addition of land to an existing national park in New Zealand’s history,” Eugenie Sage said. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels