www.treasury.govt.nz

31 January 2008

MEDIA STATEMENT

Embargoed until 10:00am, Thursday 31 January 2008

Dr Peter Bushnell

Deputy Secretary to the Treasury

Financial Statements of the Government for the Five Months Ended 30 November 2007

The Financial Statements of the Government of New Zealand for the five months ended 30 November 2007 were released by the Treasury today.

The 30 November 2007 monthly financial statements are compared against monthly forecast tracks based on the 2007 Half Year Budget Economic and Fiscal Update.

November highlights

• OBEGAL was $240 million (12.5%) higher than forecast at $2,161 million (compared to a forecast of $1,921 million) with core Crown operating expenses under forecast;

• However, the operating balance was $506 million (28.3%) lower than forecast at $1,284 million (compared to a forecast of $1,790 million). This was driven primarily by lower than expected investment returns for the NZS Fund (refer below);

• Core Crown residual cash was $208 million higher than forecast at $774 million (compared to a forecast of $566 million). This was mainly the result of tax receipts being ahead of forecast ($90 million) and core Crown capital expenditure lower than forecast ($138 million);

• GSID (excluding settlement cash) was 19.0% of GDP compared to a forecast of 18.5% (based on September 2007 GDP);

• Net core Crown debt was $171 million lower than forecast at $2,547 million (compared to a forecast of $2,718 million); and

• The NZS Fund operating balance was a deficit of $143 million compared to a forecast surplus of $395 million. The decline in return was driven in large part by the recent slowing in United States’ economic activity, and future growth uncertainty

ENDS

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