Government Finance Statistics (general Government): Year Ended June 2020
Government finance statistics (general government) gives an economic representation of New Zealand's central and local government financial activity.
In the year ended June
- General government net operating balance dropped to a $12.9 billion deficit, as government operating expenses exceeded revenue for the first time since 2013.
- Total operating income decreased by 1.7 percent, mostly led by a decline in tax revenue.
- The fall in tax revenue was led by decreases to taxes payable by corporations (down 17.9 percent) and taxes on goods and services (down 0.6 percent).
- Total operating expenditure increased by 19.7 percent, following the government’s fiscal support measures in response to COVID-19.
- Operating expenditure growth was driven by a strong increase to subsidies (up $12.6 billion) – particularly, the COVID-19 wage support subsidy – and increased social benefits (up $4.1 billion).
- Net acquisition of non-financial assets fell by $2.1 billion to $4.9 billion as investment in non-financial assets decreased following a particularly high level of investment in 2019.
- Net borrowing was $17.8 billion.
- Net worth decreased by $19.9 billion to $327.1 billion, falling for the first time since 2012.
- Net debt was $52.4 billion, up $23.7 billion from last year, increasing for the first time since 2016.