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

 

Financial Statements of the Govt of NZ to Sept 2013

The Financial Statements of the Government of New Zealand for the three months ended 30 September 2013 were released by the Treasury today. These financial statements are compared against forecasts based on the Budget Economic and Fiscal Update (BEFU), released on 16 May 2013.


Read more at: http://www.treasury.govt.nz/government/financialstatements/monthend


--

Financial Statements of the Government of New Zealand for the Three Months Ended 30 September 2013

8 Nov 2013

The Financial Statements of the Government of New Zealand for the three months ended 30 September 2013 were released by the Treasury today. These financial statements are compared against forecasts based on the Budget Economic and Fiscal Update (BEFU), released on 16 May 2013.

Overall, key indicators were slightly stronger than forecast in Budget 2013.

Core Crown tax revenue of $14.4 billion was 1.1% higher than forecast, largely due to other individuals’ tax and GST ($143 million and $108 million respectively). While GST was relatively close to forecast, continued strength in gross other persons tax and lower than expected refunds have contributed to higher than forecast other individuals tax. This improved performance was partially offset by $113 million lower than expected corporate tax, due to lower than forecast provisional tax.

Core Crown expenses of $17.5 billion were 1.4% lower than forecast. Delays in earthquake expenses and treaty settlements ($88 million and $55 million respectively) led to lower than expected expenses. Other lower than forecast expenditure was spread across a number of activities.

The total Crown’s operating balance before gains and losses (OBEGAL) was a deficit of $1.3 billion which was $382 million lower than expected, largely owing to the stronger than forecast core Crown tax revenue and lower than expected core Crown expenses.

Gains on the Crown’s investment portfolios were $781 million higher than expected, particularly the New Zealand Superannuation Fund. In addition, actuarial gains on the ACC outstanding claims liability arising from discount rate changes, resulted in unforecast gains of $812 million. The better than expected core Crown revenue and expenses result, alongside these stronger than expected gains, were the key reason for the total Crown’s operating balance inclusive of gains and losses recording a $539 million surplus, compared with an expected $1.2 billion deficit.

At 30 September, total Crown assets were $242.2 billion and liabilities were $171.7 billion. The Crown’s net worth strengthened to $68.5 billion.

The core Crown operating cash deficit was $2.8 billion. After taking account of capital expenditure during the year, there was a residual cash deficit of $3.7 billion at 30 September ($400 million below forecast). The cash shortfall was funded through additional borrowing which pushed the net core Crown net debt to $60.0 billion, equivalent to 28.2% of GDP. Gross debt was also close to forecast at $80.1 billion, or 37.7% of GDP.

Year to dateFull Year
$ millionSeptember
2013
Actual[1]
September
2013
BEFU
Forecast[1]
Variance
to BEFU
$m
Variance
to BEFU
%
June
2014
BEFU
Forecast[2]
Core Crown
Core Crown tax revenue14,35714,2021551.162,383
Core Crown revenue16,03515,7183172.068,382
Core Crown expenses17,51717,7682511.472,367
Core Crown residual cash(3,706)(4,106)4009.8(6,886)
Gross debt380,11480,5364220.587,686
as a percentage of GDP37.7%37.9% 38.5%
Net debt460,01560,4494340.764,765
as a percentage of GDP28.2%28.4% 28.4%
Total Crown
Operating balance before gains and losses(1,285)(1,667)38222.9(2,033)
Operating balance539(1,157)1,696146.6358
Net worth attributable to the Crown68,498 66,9571,5412.361,997

1 Using GDP for the year ended 30 June 2013 of $212,701 million (Source: Statistics New Zealand)
2 Using forecast GDP for the year ended 30 June 2014 of $227,892 million (Source: Treasury)
3 Gross sovereign-issued debt excluding settlement cash and Reserve Bank bills
4 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

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>