Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Govt Financial Statements for Three Months Ended 30 Sep

www.treasury.govt.nz

7 November 2012

MEDIA STATEMENT

Wednesday 7 November 2012

Fergus Welsh

Chief Financial Officer

The Treasury

Financial Statements of the Government of New Zealand for the Three Months Ended 30 September 2012

The Financial Statements of the Government of New Zealand for the three months ended 30 September 2012 were released by the Treasury today. These financial statements are the first for the 2012/2013 financial year and are compared against monthly forecast tracks based on the 2012 Budget Economic and Fiscal Update (BEFU) released on 24 May 2012.

In the three months to 30 September the operating balance before gains and losses (OBEGAL) deficit, at $2.1 billion, was $449 million higher than forecast. Core Crown tax and interest revenue were both lower than expected, partially offset by lower core Crown expenses.

Core Crown tax revenue of $13.5 billion was $295 million or 2.1% lower than expected. Most major types of tax revenue were below forecast, the exception being other individuals’ tax revenue, which was higher than expected. In summary: wage growth and private consumption below forecast led to lower than forecast source deductions and GST of $166 million for each of these tax types lower than forecast provisional tax resulted in $103 million lower than forecast corporate tax, and other individuals’ tax was $329 million higher than expected, reflecting an increase in the effective tax rate paid by non-incorporated businesses.

Other core Crown revenue was slightly higher than forecast, with dividend revenue from SOEs $248 million higher than forecast, primarily due to dividends received earlier than forecast. This revenue source is within the Crown so is not included in the total Crown OBEGAL result. Offsetting the increased dividends, interest revenue was $147 million lower than forecast primarily due to lower interest rates compared to those at the time of the forecast.

Core Crown expenditure of $17.3 billion was $201 million or 1.1% lower than forecast. The most significant under-spending was in welfare, education and finance costs ($86 million, $63 million and $45 million respectively). Offsetting these under-spends were earthquake expenses (which were $114 million higher than forecast) due to the recent land zoning decisions that were announced subsequent to the forecast being finalised.

While the OBEGAL deficit was higher than forecast, for the three months to September 2012, gains on New Zealand Superannuation Fund and ACC’s investment portfolios were greater than expected ($1.1 billion and $0.6 billion respectively), leading to an operating balance surplus of almost $0.1 billion, $1.2 billion higher than the forecast operating deficit. Gross debt at $79.3 billion, or 38.8% of GDP was lower than forecast, reflecting government stock repurchased on the secondary market which reduced the amount held by parties outside the core Crown.

Click here for full statement (PDF)

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Ch-Ch-Changes At IRD

job cuts aren’t happening at the IRD, exactly. Instead, there’s apparently a ‘transformation’ in store, and jobs won’t be axed ; no, they will be ‘transformed’ before our eyes into… non-jobs, if you happen to be among the unlucky legion of 1,900 who are being lined up for transformation, which seems to work rather like a secular version of the Rapture.

Except that at IRD, not even your shoes will be left behind. More>>

 

Christchurch Mental Health: Hospital Too 'Awful' For Reviewers To Visit

Jonathan Coleman has to stop the stalling over a new building for mental health services in Christchurch to replace the quake damaged Princess Margaret Hospital, says Labour’s Health spokesperson David Clark... More>>

ALSO:

Greens Call For Govt Action: Children Sick Because Of NZ Housing

The Royal Australasian College of Physicians president-elect said today that children with preventable respiratory illnesses are being re-admitted to hospital because they're being sent back to cold, damp homes. More>>

ALSO:

Less Tax Cut, More Spending: Labour Launches Fiscal Plan

“Labour will invest $8 billion more in health, $4 billion more in education and $5 billion more for Kiwi families through Working for Families, Best Start and the Winter Energy Payment than the Budget 2017 projections for the forecast period.” More>>

ALSO:

Gordon Campbell: On The Greens’ Room For Political Pragmatism

The Greens here are currently being criticized by the commentariat for not making the same kind of pragmatic choices that sunk the Democrats in Australia. More>>

Gordon Campbell: On Being Humane About Welfare, Child Support, And Tax

It made for an unusual Venn diagram, but Greens co-leader Metiria Turei and Finance Minister Steven Joyce were briefly sharing some common elements this week in the set that says – hey, don’t use the powers of the state in ways guaranteed to make the system you’re trying to defend worse, not better. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election