The Ministry of Finance and Economic Management has now released the Quarterly Financial Update for March 2014. The net operating balance of the General Government Sector as at 31 March 2014 was a surplus of $3.4 million.
• Operating revenue was $87.0 million; and
• Operating expenditure was $83.6 million.
The overall fiscal balance which excludes depreciation, but includes capital expenditure was a deficit of $1.6 million.
General Government sector revenue as at 31 March 2014 was lower than the original budget estimate (YTD) by $4.4 million or 5 per cent, mainly because of the reduction of income taxes on 1 January, slightly offset by the increase in the rate of VAT to 15%.
General Government Sector expenditure as at 31 March 2014 was lower than the original budget estimate (YTD) by $6.8 million or 8 per cent, mainly because of lower than expected spending on the Los Angeles and Sydney underwrite, savings in personnel due to vacancies and lower than anticipated levels of depreciation.
In the State Owned Enterprise Sector trading revenue was 7 per cent above budget (1.9 million) and operating expenditure on budget. Revenue increases were mainly attributable to Te Aponga Uira which reported increased energy consumption for the quarter and the Airport Authority which reported extra flights.
The Crown’s gross borrowing for the March 2014 quarter was $98.6 million, an increase of $13 million from the December 2013 quarter. This increase was mainly attributable to the uptake of the loan associated with Te Mato Vai.
General government cash reserves at the March 2014 quarter were $18.3 million, a decrease of $1 million from the Dec 2013 quarter.