5/5/08 - Financial Statements of the Government for the nine months ended 31 March 2008

Please find attached a media statement regarding the Financial Statements of the Government for the nine months ended 31 March 2008.

See... fsgnz9mthsmar08media.pdf

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SUMMARY

Results for the nine months ended 31 March 2008

• The OBEGAL at $4.6 billion was $0.2 billion lower than forecast.

• Core Crown tax revenue, receipts, expenditure and residual cash were also largely on track.

• The operating balance including gains and losses was $4.0 billion lower than forecast, primarily driven by losses from the Crown Financial Institutions’ (CFIs) investment portfolios and revaluation of long-term liabilities (ACC claims liabilities, pension commitments and provisions like Kyoto), offset by gains on other financial instruments.

• Losses on the CFIs investment portfolios were due to continuing declines in equity markets. Equity markets can be volatile in the short term.

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