The Treasury Annual Report Shows Raised Ambitions in 2015/16

20 Oct 2016

The Treasury has published its Annual Report for 2015/16 today. Secretary to the Treasury Gabriel Makhlouf praised the contribution that staff and high expectations have made to a successful year.

“This year we raised our ambition to be a world-leading Treasury, requiring this level of performance if we are to lift New Zealand’s living standards. This also reflects the level of performance we must deliver to be effective within the local and global context in which we operate,” says Mr Makhlouf.

“Overall it was a positive year for the New Zealand economy. In the fiscal year to June 2016, the economy grew 2.8% from the previous fiscal year, and this solid economic performance looks set to continue. Our most recent Budget forecast is for real GDP growth to average a respectable 2.9% between now and June 2020. The Crown’s books are also in a sound state. New Zealand has a broadly balanced Government budget with increasing surpluses expected over the years ahead.

“International economic conditions remain more of a challenge. Our trading partner growth eased in 2015, with China’s growth slowing as its economy transitions from investment to more consumption. This weighed on growth in other Asian trading partners and Australia. Global risks remain skewed to the downside, including persistently low global growth and inflation, uncertainty following the United Kingdom’s vote to exit from the European Union, and geopolitical risks.

“In light of domestic growth but uncertain international conditions, the Treasury will maintain a close eye on the government’s books but also use the opportunities that come with growth to help build a sustainable foundation for New Zealand’s economic prosperity.”

Mr Makhlouf noted several highlights from the Treasury’s work during the year.

“Among our goals is to have the investment approach embedded in modern policy making. In July 2015 a new investment management system came into force that helps ensure there is active stewardship of government resources, and strong alignment between individual investments and the government’s long-term priorities.

“As part of the Treasury’s system leadership role, we have introduced regular Major Projects Performance Reports that improve visibility of challenges and potential risks on projects where significant public funds are being invested. We have also introduced Investor Confidence Ratings, an assessment that looks at the performance of individual agencies in managing their investments and assets.

“I also want to underscore how the Treasury is demonstrating openness – to new ideas and to how we communicate our work. We have taken up the challenge of leadership in the Champions for Change initiative. This reflects our commitment to, and the value we place on, diversity and inclusion.

“No organisation can deliver great work without great people. I want to thank people throughout the Treasury for the professionalism, dedication and enthusiasm they bring to their job every day. Because of their combined efforts the Treasury has much to be proud of over the past year and much to look forward to in the year ahead.”

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