Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Govt accounts show strong debt position

Hon Grant Robertson

Minister of Finance

29 November 2019



Govt accounts show strong debt position, impact of tax timing changes

The Government’s books are in good shape, with low debt and expenses close to forecast, Finance Minister Grant Robertson says.

“A strong position, with expenses under control, is important for the Government. There are continued warnings about the state of the global economy, with issues like the US-China trade war and Brexit throwing up increased uncertainty.

“Our strong debt position gives us the space for further opportunities to invest to strengthen the economy, particularly in infrastructure,” Grant Robertson says.

The Treasury today released the Crown accounts for the four months to October. Net debt at 20.2% of GDP was below the 20.8% forecast, while expenses were within 0.6% of forecast.

The accounts continued to show the temporary impact on the OBEGAL position from Inland Revenue’s new system for recognising revenue.

This has affected when revenue is recognised in the accounts during the year, mainly for corporate tax. The corporate tax measure which feeds into the OBEGAL was 28% below forecast over the four months – but Treasury says this is temporary and set to reverse out over the year as the timing issue evens out.

“When you look at the actual cash amount of corporate tax collected in the four months, it’s 10% ahead of forecasts,” Grant Robertson said.

The impact of the timing issues on the monthly OBEGAL position was clearly signalled when the Government released the Financial Statements in October.

The Treasury and Inland Revenue are working closely to fully understand how the new system impacts the timing for recognising revenue.

They’re also discussing why and how their respective forecasts have been different – corporate tax in the four months was much closer to Inland Revenue’s forecast. The Treasury includes its own tax estimates in the Budget forecasts, not Inland Revenue’s.

This is the last set of monthly accounts before new forecasts are released at the Half Year Economic and Fiscal Update on 11 December.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Whakaari/White Island: A Minute’s Silence For Victims

A minute’s silence will be observed at 2.11pm on Monday 16 December in honour of the victims of the Whakaari White Island eruption, Prime Minister Jacinda Ardern has confirmed...

The minute’s silence will be exactly one week after the eruption started on Monday 9 December. More>>

Gordon Campbell: On What An Inquiry Might Look Like
Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>


More Discussions: National On Housing, Transport And Infrastructure

National has today released the ninth and tenth in our series of discussion documents, which contain a range of proposals to ensure New Zealand has the high-quality housing and infrastructure it needs to prosper, Leader of the Opposition Simon Bridges says. More>>


Trains: Govt's Plans For Rail

The Government has released its long term vision for a sustainable 21st Century rail network that gets our cities moving, connects our regions and gets more freight off the roads. More>>


Gordon Campbell: On Welfare Vs Infrastructure Spending

If New Zealand has a pressing need to stimulate its flagging economy, it seems very weird that the government is choosing a $12 billion package of infrastructure spending – mainly on road and rail – that by definition, will take a very long time to deliver their stimulatory benefits ... More>>

New Reports: "Immediate Commitment To Doing Justice Differently"

Justice Minister Andrew Little released two reports today, Turuki! Turuki! from Te Uepū Hāpai I te Ora, and Te Tangi o te Manawanui: Recommendations for Reform from the Chief Victims Advisor. Both recommend a fresh approach to the way criminal justice has been approached... More>>


"Heart-Breaking And Confronting": Surgical Mesh Restorative Justice Report

Minister Genter: “People have talked about losing the life they had enjoyed before surgical mesh harmed them – the loss of a steady job, the ability to exercise, a loving relationship in some cases. Others described the chronic pain they experienced..." More>>


Law Foundation: Government Decryption Powers Must Respect Privacy

The power of government to order users and companies to decrypt encrypted data and devices needs stronger privacy protections and additional safeguards, according to a study published by researchers at the University of Waikato. More>>





InfoPages News Channels