KEY POINTS:
The Crown Accounts continue to paint a gloomy picture for the economy, with Treasury expecting things to get worse.
Treasury today released the Government's Financial Statements for the year ended December 31.
Treasury deputy secretary Peter Bushnell said with the exception of investment losses there was little difference between today's results and information previously released in updates of estimates.
Tax revenue was tracking below forecast by around $1 billion; the operating balance before gains and losses (Obegal) was $0.1b, $1.1b lower than forecast, and the residual cash deficit was negative $8.3b, $0.9b lower than forecast.
Including gains and losses the operating balance of negative $6.2b was $8.4b lower than forecast.
Treasury said reasons were lower tax revenue, investment losses $4.9b higher than forecast; ACC losses of $2.4b because of a change in the discount rate used to measure ACC unfunded liability.
Gross debt was higher than forecast due to the Residential Mortgage Backed Securities and Treasury Bills as well as higher than forecast derivative liabilities. Net core Crown debt remained lower than forecast at $5.5b.
- NZPA
