The Financial Statements of the Government of New Zealand for the financial year ended 30 June 2016 were released today.

Read more at: http://www.treasury.govt.nz/government/financialstatements/yearend/jun16

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Headlines:

• Tax revenue up $3.8 billion from a year earlier and higher than forecast (page 9).

• Core Crown expenses were $1.6 billion higher than the year before, but less than expected (page 11).

• The OBEGAL surplus of $1.8 billion continued its upwards trend, with an improvement of $1.4 billion from last year (page 13).

• However, revaluations of the Crown's liabilities led to actuarial losses (caused by a reduction in the discount rate) and losses on the revaluation of Emission Trading Scheme units (caused by an increase in the carbon price) resulted in an operating balance deficit for the year of $5.4 billion (page 13).

• While operating cash flows were positive, capital payments of $4.6 billion resulted in a residual cash deficit of $1.3 billion (page 15).

• To fund the residual cash deficit, core Crown net debt increased in nominal terms by $1.2 billion, although it fell as a percentage of GDP (to 24.6%) (page 15).

• Offsetting the operating balance deficit, revaluation uplifts on the Crown's property plant and equipment resulted in an increase in net worth attributable to the Crown of $2.9 billion (page 17).

Report: fsgnzyearjun16.pdf

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