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


Financial Statements of the Government of NZ to 30/6/15

The Financial Statements of the Government of New Zealand for the financial year ended 30 June 2015 were released today.





Ministerial Statement

The economy continues to grow, with the 18th consecutive quarter of GDP growth in the three months to 30 June giving growth of 2.4 per cent from the same quarter last year and annual average growth of 3.0 per cent in the year to 30 June 2015.

The Government's programme to build a more productive economy is also delivering dividends in terms of the Crown's finances which have been turned around in recent years.

In the wake of the global financial crisis and the Canterbury earthquakes, the total Crown's annual operating balance excluding gains and losses (OBEGAL) was a deficit of $18.4 billion, equivalent to 9 per cent of national income in a year.

Careful stewardship over day-to-day expenses permitted the Government to significantly reduce the size of the OBEGAL deficits year after year and, in 2014/15, the Crown reports a return to surplus - delivering on the Government's key fiscal priority first set in 2011.

The OBEGAL surplus of $414 million is equal to 0.2 per cent of GDP in the year to 30 June 2015 while the Government's operating balance including gains and losses of $5.8 billion is equal to 2.4 per cent of GDP.

In the year to June 2015, the core Crown's revenue was $72.2 billion, while core expenses were $72.4 billion.

The Government has continued to restrain growth in spending while focusing on getting more effective results from existing spending, particularly for the most vulnerable New Zealanders.

While core Crown expenses grew by $1.2 billion (1.7 per cent), the increase in spending was lower than the pace of growth in the economy, resulting in expenses easing to 30.1 per cent of GDP, compared with over 34 per cent of GDP four years ago.

The approach of the Government to expenditure control is working well for New Zealand and for New Zealanders.

In its Budget 2015 forecasts, the Treasury had forecast a small OBEGAL deficit in 2014/15.

However, the Government's ongoing commitment to solid expenditure control, together with tax revenue being marginally stronger than the Treasury had expected, means the Crown accounts were in surplus.

Returning to surplus in 2014/15 is a significant milestone, but the Government is committed to continued prudent management of the public finances, including effective revenue raising and ongoing attention on operating spending and the underlying drivers of demand for public services, reprioritisation of spending that is not deliver results and rigorous management of our balance sheet.

Our focus must remain on steady and ongoing reductions in public debt over the medium term. That is the most prudent approach to take in a still uncertain global environment.

Hon Bill English
Minister of Finance

30 September 2015

© Scoop Media

Business Headlines | Sci-Tech Headlines


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>


FIRST Union: Thousands Of Union Members At Countdown Feel Effect Of First Paycheque Under New Rates

Over the last week, around 7000 FIRST Union members who work at Countdown received their first payslips under new rates agreed in a Collective Agreement signed with the employer last November that will see thousands moving onto living wages, transparent ... More>>


OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>


RetailNZ: Retail Sales And Confidence Rebound After Second Lockdown Lifts

A new Retail NZ Retail Radar report show retailer sales have improved in through September as the second wave of COVID-19 restrictions lifted. Sales were up 20 per cent and 45 per cent of retailers said that their sales improved on the same time ... More>>