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Scoop
05-06-2025
- Business
- Scoop
Interim Financial Statements Of The Government Of New ZealandFor The Ten Months Ended 30 April 2025
Press Release – The Treasury The majority of the key fiscal indicators for the ten months ended 30 April 2025 were slightly better than forecast. The Governments main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit … Jayne Winfield, Chief Government Accountant The Interim Financial Statements of the Government of New Zealand for the ten months ended 30 April 2025 were released by the Treasury today. The April results are reported against forecasts based on the Budget Economic and Fiscal Update 2025 (BEFU 2025), published on 22 May 2025, and the results for the same period for the previous year. The majority of the key fiscal indicators for the ten months ended 30 April 2025 were slightly better than forecast. The Government's main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit of $7.4 billion. This was $0.1 billion smaller than forecast. While the core Crown results were favourable to forecast, this was largely offset by the results of State-owned Enterprises. Net core Crown debt was in line with forecast at $184.6 billion, or 43.2% of GDP. Core Crown tax revenue, at $100.4 billion, was $0.7 billion (0.7%) higher than forecast. Corporate tax and other individuals' tax contributed $0.4 billion and $0.2 billion respectively to the above forecast result. Core Crown expenses, at $115.8 billion, were $0.1 billion (0.1%) below forecast. This variance is mostly timing in nature and was spread across a range of agencies. The OBEGALx was a deficit of $7.4 billion, $0.1 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $11.7 billion, in line with the forecast deficit. The operating balance deficit of $6.7 billion was $2.8 billion higher than the forecast deficit. This reflected both the OBEGAL result and net unfavourable valuation movements. Net gains on financial instruments were $4.3 billion lower than forecast, driven by New Zealand Superannuation Fund (NZS Fund) and ACC's investment portfolios. This unfavourable variance was partly offset by net gains on non-financial instruments being $1.3 billion higher than the forecast loss. This was largely owing to the New Zealand Emissions Trading Scheme with net gains on the liability being $1.1 billion higher than the forecast loss. The core Crown residual cash deficit of $8.4 billion was $0.1 billion lower than forecast. While net core Crown operating cash outflows were $0.4 billion higher than forecast, net core Crown capital cash outflows were $0.5 billion lower than forecast. Net core Crown debt at $184.6 billion (43.2% of GDP) was in line with forecast. With core Crown residual cash broadly in line with forecast, this and minor movements in non-cash items contributed to the net core Crown debt result. Gross debt at $203.5 billion (47.7% of GDP) was $6.3 billion lower than forecast, largely owing to lower than forecast unsettled trades and issuances of Euro Commercial Paper. Net worth at $181.4 billion (42.5% of GDP) was $3.1 billion lower than forecast largely reflecting the year-to-date operating balance result.
Scoop
05-06-2025
- Business
- Scoop
Interim Financial Statements Of The Government Of New ZealandFor The Ten Months Ended 30 April 2025
Jayne Winfield, Chief Government Accountant The Interim Financial Statements of the Government of New Zealand for the ten months ended 30 April 2025 were released by the Treasury today. The April results are reported against forecasts based on the Budget Economic and Fiscal Update 2025 (BEFU 2025), published on 22 May 2025, and the results for the same period for the previous year. The majority of the key fiscal indicators for the ten months ended 30 April 2025 were slightly better than forecast. The Government's main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit of $7.4 billion. This was $0.1 billion smaller than forecast. While the core Crown results were favourable to forecast, this was largely offset by the results of State-owned Enterprises. Net core Crown debt was in line with forecast at $184.6 billion, or 43.2% of GDP. Core Crown tax revenue, at $100.4 billion, was $0.7 billion (0.7%) higher than forecast. Corporate tax and other individuals' tax contributed $0.4 billion and $0.2 billion respectively to the above forecast result. Core Crown expenses, at $115.8 billion, were $0.1 billion (0.1%) below forecast. This variance is mostly timing in nature and was spread across a range of agencies. The OBEGALx was a deficit of $7.4 billion, $0.1 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $11.7 billion, in line with the forecast deficit. The operating balance deficit of $6.7 billion was $2.8 billion higher than the forecast deficit. This reflected both the OBEGAL result and net unfavourable valuation movements. Net gains on financial instruments were $4.3 billion lower than forecast, driven by New Zealand Superannuation Fund (NZS Fund) and ACC's investment portfolios. This unfavourable variance was partly offset by net gains on non-financial instruments being $1.3 billion higher than the forecast loss. This was largely owing to the New Zealand Emissions Trading Scheme with net gains on the liability being $1.1 billion higher than the forecast loss. The core Crown residual cash deficit of $8.4 billion was $0.1 billion lower than forecast. While net core Crown operating cash outflows were $0.4 billion higher than forecast, net core Crown capital cash outflows were $0.5 billion lower than forecast. Net core Crown debt at $184.6 billion (43.2% of GDP) was in line with forecast. With core Crown residual cash broadly in line with forecast, this and minor movements in non-cash items contributed to the net core Crown debt result. Gross debt at $203.5 billion (47.7% of GDP) was $6.3 billion lower than forecast, largely owing to lower than forecast unsettled trades and issuances of Euro Commercial Paper. Net worth at $181.4 billion (42.5% of GDP) was $3.1 billion lower than forecast largely reflecting the year-to-date operating balance result.
Scoop
29-05-2025
- Health
- Scoop
Government's Health Boost Less Than Claimed, Expert Says
$31b for Health in Budget 2025 just 3.6 percent increase, compared with what was 'actually spent' in 2024/25, Professor Tim Tenbensel says Most of last year's boost to HNZ's bottom-line 'absorbed' by Holidays Act remediation payouts to staff Axing pay equity settlements in the health sector 'saved' the Government $420m. A leading health systems expert is questioning the Government's claim of 'record investment' in the public system, saying the real increase to the health budget this year is half of what the government claims. Health Minister Simeon Brown and Finance Minister Nicola Willis have said the $31 billion allocation for health in Budget 2025 represented an operating funding increase of 7.4 percent – or nearly $2 billion – year on year. The two ministers donned hard hats and high-vis vests for a site visit at Wellington Regional Hospital on Wednesday, where they announced details of a further $100 million investment in its ongoing upgrade. Speaking to media following the tour, Brown said Health NZ had also had a $1.4 billion uplift in operating funding this year – the second instalment of a $16.6 billion cost-pressure boost over four years. 'It's a significant uplift to allow them to invest in the front-line workforce required to give New Zealanders and timely and quality healthcare they need,' Brown said. The government's investment in health far outstripped either population growth or inflation, the Finance Minister added. 'For context, that operational funding uplift was more than 7 percent over what it's been, which even on a population basis is more than 6 percent,' Willis said. 'So, we're ensuring that funding is going in at a far faster rate than either population growth or inflation.' In response to RNZ's request for a detailed breakdown of the percentage increase, Brown's office later said the figure of 6.2 percent was 'based on Treasury's annual growth rates set out in Budget Economic and Fiscal Update 2025, and the nominal Vote Health operating spend for Budget 2025'. However, Auckland University health policy Professor Tim Tenbensel said, according to his calculations, the $31 billion allocated for health in the Budget was only 3.6 percent more than what was actually spent last year. 'So, we're pretty much treading water at best, or rather sinking a little, in this budget,' Prof Tenbensel said. Furthermore, operational funding last year only increased about 1.2 percent in real terms. 'And the reason for that is because a lot of the money for this financial year's Budget in health was soaked up to remediate the underpayment of staff under the Holidays Act,' he said. 'So, that might help to explain the reality of people in the sector wasn't matching some of the things said by government.' Tenbensel said the Government's oft-quoted claim of a $16 billion boost to Health NZ's bottom-line was 'a bit like your boss giving you a $3000 payrise each year for four years and then claiming your pay has gone up by $30,000 over that time, not $12,000'. The trick was to keep adding on the previous year's increase as 'new money', ignoring the fact that it would have been eaten up by inflation. 'It's a very creative ploy that one, so I think we need to see it for what it is,' he said. 'All governments do this sort of thing, but in the scheme of things, this one is pretty brazen.' Dumping pay equity claims, including for primary care nurses, saved the Government about $420 million in health, which mostly paid for the near $500 million investment in digital health, after hours and urgent care in the Budget, he said.
Scoop
29-05-2025
- Health
- Scoop
Government's Health Boost Less Than Claimed, Expert Says
$31b for Health in Budget 2025 just 3.6 percent increase, compared with what was "actually spent" in 2024/25, Professor Tim Tenbensel says Most of last year's boost to HNZ's bottom-line "absorbed" by Holidays Act remediation payouts to staff Axing pay equity settlements in the health sector "saved" the Government $420m. A leading health systems expert is questioning the Government's claim of "record investment" in the public system, saying the real increase to the health budget this year is half of what the government claims. Health Minister Simeon Brown and Finance Minister Nicola Willis have said the $31 billion allocation for health in Budget 2025 represented an operating funding increase of 7.4 percent - or nearly $2 billion - year on year. The two ministers donned hard hats and high-vis vests for a site visit at Wellington Regional Hospital on Wednesday, where they announced details of a further $100 million investment in its ongoing upgrade. Speaking to media following the tour, Brown said Health NZ had also had a $1.4 billion uplift in operating funding this year - the second instalment of a $16.6 billion cost-pressure boost over four years. "It's a significant uplift to allow them to invest in the front-line workforce required to give New Zealanders and timely and quality healthcare they need," Brown said. The government's investment in health far outstripped either population growth or inflation, the Finance Minister added. "For context, that operational funding uplift was more than 7 percent over what it's been, which even on a population basis is more than 6 percent," Willis said. "So, we're ensuring that funding is going in at a far faster rate than either population growth or inflation." In response to RNZ's request for a detailed breakdown of the percentage increase, Brown's office later said the figure of 6.2 percent was "based on Treasury's annual growth rates set out in Budget Economic and Fiscal Update 2025, and the nominal Vote Health operating spend for Budget 2025". However, Auckland University health policy Professor Tim Tenbensel said, according to his calculations, the $31 billion allocated for health in the Budget was only 3.6 percent more than what was actually spent last year. "So, we're pretty much treading water at best, or rather sinking a little, in this budget," Prof Tenbensel said. Furthermore, operational funding last year only increased about 1.2 percent in real terms. "And the reason for that is because a lot of the money for this financial year's Budget in health was soaked up to remediate the underpayment of staff under the Holidays Act," he said. "So, that might help to explain the reality of people in the sector wasn't matching some of the things said by government." Tenbensel said the Government's oft-quoted claim of a $16 billion boost to Health NZ's bottom-line was "a bit like your boss giving you a $3000 payrise each year for four years and then claiming your pay has gone up by $30,000 over that time, not $12,000". The trick was to keep adding on the previous year's increase as "new money", ignoring the fact that it would have been eaten up by inflation. "It's a very creative ploy that one, so I think we need to see it for what it is," he said. "All governments do this sort of thing, but in the scheme of things, this one is pretty brazen." Dumping pay equity claims, including for primary care nurses, saved the Government about $420 million in health, which mostly paid for the near $500 million investment in digital health, after hours and urgent care in the Budget, he said.
Otago Daily Times
28-05-2025
- Health
- Otago Daily Times
Budget health boost 'half of what govt claimed'
By Ruth Hill of RNZ A leading health systems expert is questioning the Government's claim of "record investment" in the public system, saying the real increase to the health budget this year is half of what the government claims. Health Minister Simeon Brown and Finance Minister Nicola Willis have said the $31 billion allocation for health in Budget 2025 represented an operating funding increase of 7.4 percent - or nearly $2 billion - year on year. The two ministers donned hard hats and high-vis vests for a site visit at Wellington Regional Hospital on Wednesday, where they announced details of a further $100 million investment in its ongoing upgrade. Speaking to media following the tour, Brown said Health NZ had also had a $1.4 billion uplift in operating funding this year - the second instalment of a $16.6 billion cost-pressure boost over four years. "It's a significant uplift to allow them to invest in the front-line workforce required to give New Zealanders and timely and quality healthcare they need," Brown said. The government's investment in health far outstripped either population growth or inflation, the Finance Minister added. "For context, that operational funding uplift was more than 7 percent over what it's been, which even on a population basis is more than 6 percent," Willis said. "So, we're ensuring that funding is going in at a far faster rate than either population growth or inflation." In response to RNZ's request for a detailed breakdown of the percentage increase, Brown's office later said the figure of 6.2 percent was "based on Treasury's annual growth rates set out in Budget Economic and Fiscal Update 2025, and the nominal Vote Health operating spend for Budget 2025". However, Auckland University health policy Professor Tim Tenbensel said, according to his calculations, the $31 billion allocated for health in the Budget was only 3.6 percent more than what was actually spent last year. "So, we're pretty much treading water at best, or rather sinking a little, in this budget," Prof Tenbensel said. Furthermore, operational funding last year only increased about 1.2 percent in real terms. "And the reason for that is because a lot of the money for this financial year's Budget in health was soaked up to remediate the underpayment of staff under the Holidays Act," he said. "So, that might help to explain the reality of people in the sector wasn't matching some of the things said by government." Tenbensel said the Government's oft-quoted claim of a $16 billion boost to Health NZ's bottom-line was "a bit like your boss giving you a $3000 payrise each year for four years and then claiming your pay has gone up by $30,000 over that time, not $12,000". The trick was to keep adding on the previous year's increase as "new money", ignoring the fact that it would have been eaten up by inflation. "It's a very creative ploy that one, so I think we need to see it for what it is," he said. "All governments do this sort of thing, but in the scheme of things, this one is pretty brazen." Dumping pay equity claims, including for primary care nurses, saved the Government about $420 million in health, which mostly paid for the near $500 million investment in digital health, after hours and urgent care in the Budget, he said.
