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New Zealand Economic and Financial Overview 2009

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Current Fiscal Position and 2008 Budget

The following table summarises the government's fiscal position according to GAAP in line with the provisions of Part 2 of the Public Finance Act 1989.

Current Fiscal Position and 2008 Budget
Year ended 30 June
 $ million
2004 2005 2006 2007 2008 2009
Budget Update(1)		 2009
December Update(2)

Statement of Financial Performance
Core Crown tax revenue 43,358 47,468 50,973 53,477 56,747 56,058 55,400
Core Crown other revenue 2,861 3,577 4,762 4,734 5,072 5,149 5,406
Core Crown revenue 46,219 51,045 55,735 58,211 61,819 61,207 60,806
Crown entities, SOE revenue and eliminations 13,051 14,322 15,690 16,378 19,660 20,483 NA
TOTAL CROWN REVENUE 59,271 65,367 71,425 74,589 81,479 81,690 NA
Social security and welfare 14,252 14,682 15,598 16,768 17,877 19,156 NA
Health 8,111 8,813 9,547 10,355 11,297 12,377 NA
Education 7,585 7,930 9,914 9,269 9,551 10,739 NA
Core government services 2,091 2,567 2,507 4,817 3,371 3,649 NA
Other core Crown expenses 9,843 10,903 11,754 12,795 14,901 16,438 NA
CORE CROWN EXPENSES 41,882 44,895 49,320 54,004 56,997 62,359 62,741
Crown entities, SOE expenses and eliminations 11,816 13,397 15,015 14,725 18,845 19,395 NA
TOTAL CROWN EXPENSES 53,698 58,292 64,334 68,729 75,842 81,754 NA
OBEGAL 5,573 7,075 7,091 5,860 5,637 (64) (550)
Gains/(losses) 1,736 (1,144) 2,451 2,162 (3,253) 1,973 (3,779)
Operating balance 7,309 5,931 9,542 8,022 2,384 1,909 (4,329)

Statement of Financial Position
Property, plant and equipment 57,940 67,494 89,141 95,598 103,329 107,895 NA
Financial assets 32,654 42,005 66,396 73,719 85,063 87,145 NA
Other assets 18,756 19,714 9,503 11,031 12,443 13,579 NA
TOTAL ASSETS 109,351 129,212 165,040 180,348 200,835 208,619 NA
Borrowings 37,720 37,728 40,027 41,898 46,110 48,618 NA
Other liabilities 32,036 37,243 41,042 41,623 49,211 52,232 NA
TOTAL LIABILITIES 69,756 74,972 81,069 83,521 95,321 100,850 NA
Net worth 39,595 54,240 83,971 96,827 105,514 107,769 NA

Fiscal Indicators
Core Crown revenue (excl NZS Fund) 46,165 51,088 55,844 58,482 61,671 61,102 60,406
Core Crown expenses 41,882 44,895 49,320 54,004 56,997 62,359 62,741
OBEGAL 5,573 7,075 7,091 5,860 5,637 (64) (550)
OBEGAL (excl NZS Fund) 5,526 7,140 7,252 6,250 5,586 (31) (812)
Operating balance 7,309 5,931 9,542 8,022 2,384 1,909 (4,329)
Core Crown residual cash 520 3,104 2,985 2,793 2,057 (5,909) (6,633)
GSID (excluding settlement cash) 36,017 35,478 33,903 30,647 31,390 32,087 34,786
Net core Crown debt 15,569 11,093 8,044 4,109 (19) 5,207 5,631
NZS Fund net worth 3,956 6,555 9,855 12,973 14,212 17,440 14,335

(1) Pre-election Budget Update published 6 October 2008.

(2) Partial Update published 18 December 2008 – main scenario.

Current Fiscal Position and 2008 Budget
  Year ended 30 June
(as % of GDP)
  2004 2005 2006 2007 2008 2009
Budget Update(1)		 2009
December Update(2)

GDP

142,251 150,789 156,933 168,106 180,077 184,390 181,100
Core Crown tax revenue 30.5% 31.5% 32.5% 31.8% 31.5% 30.4% 30.6%
Core Crown other revenue 2.0% 2.4% 3.0% 2.8% 2.8% 2.8% 3.0%
Core Crown revenue 32.5% 33.9% 35.5% 34.6% 34.3% 33.2% 33.6%
Crown entities, SOE and elimination revenue 9.2% 9.5% 10.0% 9.7% 10.9% 11.1% NA
TOTAL CROWN REVENUE 41.7% 43.3% 45.5% 44.4% 45.2% 44.3% NA
Social security and welfare 10.0% 9.7% 9.9% 10.0% 9.9% 10.4% NA
Health 5.7% 5.8% 6.1% 6.2% 6.3% 6.7% NA
Education 5.3% 5.3% 6.3% 5.5% 5.3% 5.8% NA
Core government services 1.5% 1.7% 1.6% 2.9% 1.9% 2.0% NA
Other core Crown expenses 6.9% 7.2% 7.5% 7.6% 8.3% 8.9% NA
CORE CROWN EXPENSES 29.4% 29.8% 31.4% 32.1% 31.7% 33.8% 34.6%
Crown entities, SOE expenses and eliminations 8.3% 8.9% 9.6% 8.8% 10.5% 10.5% NA
TOTAL CROWN EXPENSES 37.7% 38.7% 41.0% 40.9% 42.1% 44.3% NA
OBEGAL 3.9% 4.7% 4.5% 3.5% 3.1% (0.0%) (0.3%)
Gains/(losses) 1.2% (0.8%) 1.6% 1.3% (1.8%) 1.1% (2.1%)
Operating balance 5.1% 3.9% 6.1% 4.8% 1.3% 1.0% (2.4%)

Statement of Financial Position

              
Property, plant and equipment 40.7% 44.8% 56.8% 56.9% 57.4% 58.5% NA
Financial assets 23.0% 27.9% 42.3% 43.9% 47.2% 47.3% NA
Other assets 13.2% 13.1% 6.1% 6.6% 6.9% 7.4% NA
TOTAL ASSETS 76.9% 85.7% 105.2% 107.3% 111.5% 113.1% NA
Borrowings 26.5% 25.0% 25.5% 24.9% 25.6% 26.4% NA
Other liabilities 22.5% 24.7% 26.2% 24.8% 27.3% 28.3% NA
TOTAL LIABILITIES 49.0% 49.7% 51.7% 49.7% 52.9% 54.7% NA
Net worth 27.8% 36.0% 53.5% 57.6% 58.6% 58.4% NA

Fiscal Indicators

              
Core Crown revenue (excl NZS Fund) 32.5% 33.9% 35.6% 34.8% 34.2% 33.1% 33.3%
Core Crown expenses 29.4% 29.8% 31.4% 32.1% 31.7% 33.8% 34.6%
OBEGAL 3.9% 4.7% 4.5% 3.5% 3.1% (0.0%) (0.3%)
OBEGAL (excl NZS Fund) 3.9% 4.7% 4.6% 3.7% 3.1% (0.0%) (0.4%)
Operating balance 5.1% 3.9% 6.1% 4.8% 1.3% 1.0% (2.4%)
Core Crown residual cash 0.4% 2.1% 1.9% 1.7% 1.1% (3.2%) (3.7%)
GSID (excluding settlement cash) 25.3% 23.5% 21.6% 18.2% 17.4% 17.4% 19.2%
Net core Crown debt 10.9% 7.4% 5.1% 2.4% (0.0%) 2.8% 3.1%
NZS Fund net worth 2.8% 4.3% 6.3% 7.7% 7.9% 9.5% 7.9%

(1) Pre-election Budget Update published 6 October 2008.

(2) Partial Update published 18 December 2008 – main scenario.

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