NZ Economy: NZ’s Net Debt Edges Higher
June 18th, 2010
With sovereign debt fears stalking global markets, news NZ’s debt position is not improving will be of concern. Latest figures show the Government’s cash flow and financial statements have remained similar to forecasts, and though the tax take is in line with projections, the country’s net debt position has climbed 0.3% to $27.8bn, or 15% of GDP.
Forecast Government revenue was $74m ahead of projections at $41.5bn, while forecast Government expenses were $416m lower at $52.3bn. However, Government cash payments were in line with forecast, and the residual cash deficit of $9.8bn was higher than expected despite the smaller operating balance deficit. The higher residual cash deficit, along with valuation losses, resulted in a net debt position that was $458 m higher than forecast at $27.78bn.
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