TREASURY RELEASE: Financial Statements of the NZ Government

The Financial Statements of the Government provide a record of the Government’s financial performance over the three months ended 30 September 2009 and its financial position as at that date.

The forecast results for the three months ended 30 September 2009 are based on the forecasts in the 2009 Budget Economic and Fiscal Update (BEFU), which was released on 28 May 2009.

Results for the three months ended 30 September 2009: Core Crown tax revenue at $11.9 billion was $1.1 billion lower than forecast. This follows on from the trend reported in the June 2009 annual financial statements. The majority of this variance was in relation to corporate tax revenue which was $0.9 billion under forecast. Lower-than-expected 2009 tax year profits coupled with assumptions that changes to provisional tax due dates would have on tax seasonal patterns that did not eventuate make up the bulk of this variance.

A clearer picture of the implications for 2010 is likely to emerge after the end of October, by which time any seasonal volatility is expected to have settled down.

This lower tax revenue was the main contributor to an operating balance before gains and losses deficit of $2.0 billion ($0.9 billion larger than the $1.1 billion deficit forecast).

* Higher-than-forecast investment returns reported by the NZS Fund and ACC ($1.4 billion and $0.7 billion respectively) offset the tax result meaning the operating balance deficit was slightly better than forecast at $0.2 billion ($0.4 billion lower than the forecast deficit of $0.6 billion).

* Gross debt at $48.5 billion was $1.4 billion higher than forecast (with a corresponding increase in financial assets) due to an increase in IMF reserve liabilities.

* Other key indicators were largely on target.

Financial Statements of the Government - full report (pdf)

ENDS

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