Financial Statements of the Government of New Zealand for the Six Months Ended 31 December 2012
The Financial Statements of the Government of New Zealand for the six months ended 31 December 2012 were released by the Treasury today.
These financial statements are compared against forecast tracks based on the 2012 Half Year Economic and Fiscal Update (HYEFU), released on 18 December 2012.
Core Crown tax revenue at $27.3 billion was close to forecast, $31 million (0.1%) lower than expected. Both source deductions and other
individuals’ tax were above forecast (by $111 million and $122 million respectively) while corporate tax was under
forecast by $151 million.
The OBEGAL deficit was $158 million lower than expected at $3.2 billion, primarily reflecting the lower core Crown expenditure.
The operating balance was in surplus at $1.7 billion ($2.3 billion higher than the forecast deficit of $541 million) as net investment gains
continued to be recorded by the New Zealand Superannuation Fund and ACC. ACC also recorded an actuarial gain on its
liability for outstanding insurance claims, which reflected favourable changes in the discount rate and claims
experience.
The residual cash deficit was $558 million below forecast at $9.2 billion as tax receipts were higher than expected ($417 million or 1.7% above
forecast) and capital spending was $159 million lower than forecast. GST contributed $220 million of the additional
receipts, largely due to the timing of refunds. Source deductions were $158 million above forecast, which was in line
with revenue, consistent with labour earnings growth data released earlier this month.
In addition to the residual cash result, currency in circulation was higher than forecast due increased public demand
for currency over the Christmas period and resulted in net debt being $1.2 billion below forecast at $59.1 billion (28.4% of GDP).
Gross debt was $1.5 billion below forecast at $81.7 billion, or 39.2% of GDP. While the Government bond issuance was close to
forecast, a larger than expected portion of this debt was held by the Reserve Bank reducing the amount of debt held
externally.