Core Crown revenue and expenses below forecast
Core crown revenue was $466 million lower than expected in the nine months to the end of March, while core crown expenses were $422 million lower.
Hot Topic
EARNINGS
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Core crown revenue was $466 million lower than expected in the nine months to the end of March, while core crown expenses were $422 million lower.
Figures published by The Treasury today compare the Government's financial statements against forecasts based on the 2010 Half Year Economic and Fiscal Update published in December.
The nine month figures show a deficit of $10.2 billion in the operating balance before gains and losses. That was $1.3b, or 14.8 percent, higher than forecast due mainly to EQC's estimated $1.5b share of costs from the February 22 Christchurch earthquake.
At the same time, the operating balance deficit was $3.8b stronger than expected at $3.34b, mainly due to gains on investments and derivatives held by the NZS Fund and ACC and actuarial gains on the valuation of ACC's long term liabilities.
Net debt was similar to forecast at $39.4b, equivalent to 20.2 percent of gross domestic product, Treasury said.
Core crown tax revenue was just $19m higher than forecast at $37.91b.
The contribution of source deductions to tax revenue was $242m or 1.6 percent higher than forecast, as it appeared the impact of tax cuts had not been as large as anticipated, Treasury said.
Offsetting those gains GST revenue was $263m or 2.6 percent lower than forecast, with factors including reduced household spending and delays to rebuilding activity in Christchurch.
Core crown expenses for the nine months were $50.35b, $422m or 0.8 percent below forecast mainly due to underspends in a number of areas, partly offset by a $331m revision in the estimate of recoveries relating to the deposit guarantee scheme.
Gross debt was $2.5b higher than forecast at $66.7b, as March set a record with $2.8b worth of bonds sold, taking the year-to-date issuance total to $13.9b. Proceeds from the bond issuances were largely invested in financial assets.
The core crown residual cash deficit was $102m higher than forecast at $12.41b. Corporate tax was $488m lower than forecast, thought to be partly due to the Christchurch earthquake as disruptions affected the ability of companies to make tax payments, Treasury said.
Net purchases of physical assets were $435m less than forecast, including delays in $175m of defence projects, and delays in $71m of school property capital programmes.
NZPA
Tue, 10 May 2011
Tue, 10 May 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Free News Alerts
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
Core Crown revenue and expenses below forecast
14432