Sharechat Logo

Government accounts slump to $3.5b deficit

Friday 5th December 2008

Text too small?
Then New Zealand government's operating balance slumped to a $3.5 billion deficit, $5 billion worse than forecast, reflecting losses on investment in state funds such as the NZ Superannuation Fund.

The deficit in the four months ended Oct. 31 was the result of unrealized losses on investments as a result of "continuing turmoil in global financial markets," Treasury deputy secretary Peter Bushnell said in a statement.

Stock markets worldwide have slumped in the past three months amid increasing evidence of a prolonged global recession. The super fund had a larger-than-expected $3.5 billion loss on its investment portfolio. ACC's loss was $600 million and EQC's was $200 million.

The Government Superannuation Fund and ACC also had losses of $1 billion and $400 million respectively after their long-term liabilities were revalued.

The government's cash deficit was $900 million lower than expected at $3.7 billion, reflecting in transferring the $700 million from the previous government's Fast Forward fund and higher-than-expected petroleum mining royalties.

Gross crown debt was $3.1 billion higher than expected at NZ$33.6 billion. Net core crown debt was $1.9 billion lower than expected at $2.2 billion.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

CDC Independent Valuation - 30 June 2025
TruScreen Group Limited SPP Update
THL provides updated guidance
CEN - Greymouth gas deal
July 4th Morning Report
July 3rd Morning Report
ikeGPS Chief Financial Officer Transition
TWL - TradeWindow announces strategic partnership with FTA
BLT - Patent issue settled and new 5 year agreement with BSP
July 2nd Morning Report