Gaap

Generally Accepted Accounting Practice (GAAP) Series Tables
Forecast Financial Statements

These forecasts have been prepared in accordance with the Fiscal Responsibility Act 1994. They are based on the accounting policies and assumptions that follow on pages 155168. As with all such assumptions, there is a degree of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends. The forecasts have been prepared in accordance with the Statement of Responsibility and reflect the judgements and information known at the time they were prepared. They reflect all Government decisions and circumstances communicated to 10 May 2002.
Finalisation Dates Fiscal forecasts Tax revenue forecasts Economic outlook Government decisions and circumstances Actual asset revaluations Foreign-exchange rates Specific fiscal risks Contingent liabilities and commitments 10 May 10 May 10 May 10 May 31 March 31 March 10 May 31 March
B.2 & B.3 | 141
2002 BUDGET ECONOMIC AND FISCAL UPDATE
Reporting Entity as at 10 May 2002

These Forecast Financial Statements are for the Crown reporting entity as specified in Part III of the Public Finance Act 1989. This comprises Ministers of the Crown and the following entities:
Offices of Parliament Office of the Controller and Auditor-General Office of the Ombudsmen Parliamentary Commissioner for the Environment Departments Agriculture and Forestry Archives New Zealand Child, Youth and Family Services Conservation Corrections Courts Crown Law Culture and Heritage Customs Defence Economic Development Education Education Review Office Environment Fisheries Foreign Affairs and Trade Government Communications Security Bureau Health Housing Inland Revenue Internal Affairs Justice Labour Land Information New Zealand Mori Development National Library New Zealand Defence Force Office of the Clerk Pacific Island Affairs Parliamentary Counsel Office Parliamentary Service Police Prime Minister and Cabinet Research, Science and Technology Security Intelligence Service Serious Fraud Office Social Development State Services Commission Statistics Tourism Transport Treasury Womens Affairs Youth Affairs State-owned enterprises Agriquality New Zealand Limited Airways Corporation of New Zealand Limited Asure New Zealand Limited Electricity Corporation of New Zealand Limited Genesis Power Limited Landcorp Farming Limited Meridian Energy Limited Meteorological Service of New Zealand Limited Mighty River Power Limited New Zealand Post Limited New Zealand Railways Corporation Solid Energy New Zealand Limited Television New Zealand Limited Terralink New Zealand Limited Timberlands West Coast Limited Transpower New Zealand Limited
Air New Zealand Limited (is included for disclosure purposes as if it were a SOE)
142 | B.2 & B.3
GAAP SERIES TABLES
Crown entities Accident Compensation Corporation Accounting Standards Review Board Agriculture and Marketing Research and Development Trust Alcoholic Advisory Council of New Zealand Animal Control Products Limited Arts Council of New Zealand Toi Aotearoa Asia 2000 Foundation of New Zealand Broadcasting Commission Broadcasting Standards Authority Building Industry Authority Career Services Casino Control Authority Civil Aviation Authority of New Zealand Commerce Commission Commissioner for Children Crown research institutes (9) District health boards (21) Early Childhood Development Board Earthquake Commission Electoral Commission Energy Efficiency and Conservation Authority Environmental Risk Management Authority Fish and game councils (13) Foundation for Research, Science and Technology Government Property Services Limited Government Superannuation Fund Authority Health and Disability Commissioner Health Research Council of New Zealand Health Sponsorship Council Hillary Commission for Sport, Fitness and Leisure Housing New Zealand Corporation Human Rights Commission Industry New Zealand Land Transport Safety Authority of New Zealand Law Commission Learning Media Limited Legal Services Agency Management Development Centre Trust Maritime Safety Authority of New Zealand Mental Health Commission Museum of New Zealand Te Papa Tongarewa New Zealand Antarctic Institute Reserve Bank of New Zealand New Zealand Artificial Limb Board New Zealand Blood Services New Zealand Business Development Board New Zealand Film Commission New Zealand Fire Service Commission New Zealand Fish and Game Council New Zealand Game Bird Habitat Trust Board New Zealand Government Property Corporation New Zealand Lotteries Commission New Zealand Lottery Grants Board New Zealand Qualifications Authority New Zealand Sports Drug Agency New Zealand Symphony Orchestra Limited New Zealand Teachers Council New Zealand Tourism Board New Zealand Trade Development Board Ngai Tahu Ancillary Claims Trust Office of Film and Literature Classification Pacific Business Trust Pharmaceutical Management Agency Police Complaints Authority Privacy Commissioner Public Trust Quotable Value New Zealand Limited Radio New Zealand Limited Reserve boards (51) Residual Health Management Unit Retirement Commissioner Road Safety Trust School boards of trustees (2,664) Securities Commission Skill New Zealand Standards Council Takeovers Panel Te Reo Whakapuaki Irirangi (Te Mangai Paho) Te Taura Whiri I Te Reo Mori (Mori Language Commission) Tertiary education institutions (39) Testing Laboratory Registration Council The Guardians of New Zealand Superannuation Transfund New Zealand Transit New Zealand Transport Accident Investigation Commission Trustees of the National Library
B.2 & B.3 | 143
Forecast Statement of Financial Performance

for the years ending 30 June
2001 Actual 2002 Previous Estimated 2003 2004 2005 2006 Budget Actual Forecast Forecast Forecast Forecast
($ million) Revenue Levied through the Crown's Sovereign Power Direct taxation Indirect taxation Total taxation revenue Compulsory fees, fines, penalties and levies Total Revenue Levied through the Crown's Sovereign Power Earned through the Crown's Operations Investment income Sales of goods and services Other operational revenue Unrealised losses arising from changes in the value of commercial forests Total Revenue Earned through the Crown's Operations Total Revenue Expenses By Functional Classification Social security and welfare GSF pension expenses Health Education Core government services Law and order Defence Transport and communications Economic and industrial services Heritage, culture and recreation Primary services Housing and community development Other Finance costs Net foreign-exchange (gains)/losses Forecast for future new spending Total Expenses Revenue less Expenses Surplus attributable to state-owned enterprises and Crown entities (excl. ACC liability valuation) ACC outstanding claims liability valuation Dividends and other distributions Net Surplus Attributable to State-owned Enterprises and Crown Entities Operating Balance
Note
1 2
23,863 12,875 36,738 385 37,123
24,505 13,180 37,685 418 38,103
24,478 13,899 38,377 493 38,870
25,697 14,444 40,141 472 40,613
27,139 14,945 42,084 487 42,571
28,478 15,503 43,981 493 44,474
29,479 16,091 45,570 506 46,076
3 4
1,369 659 381 (40) 2,369 39,492
934 654 305 .. 1,893 39,996
1,219 685 398 .. 2,302 41,172
1,337 705 297 .. 2,339 42,952
1,615 665 291 .. 2,571 45,142
1,904 665 286 .. 2,855 47,329
2,232 667 284 .. 3,183 49,259
13,216 855 7,342 6,690 1,817 1,560 1,267 1,026 1,141 424 287 50 75 5 5 5 2,483 (47) .. 38,186 1,306 8 8 844 (420) (321) 103 1,409
13,826 667 7,684 7,056 1,552 1,640 1,153 1,027 1,225 456 320 90 114 2,395 .. 160 39,365 631 953 .. (208) 745 1,376
13,615 339 7,733 7,150 1,611 1,771 1,188 1,156 1,187 500 327 95 109 2,303 64 .. 39,148 2,024 1,057 (42) (403) 612 2,636
13,936 671 8,370 7,494 1,641 1,734 1,166 1,238 1,275 533 343 103 114 2,339 .. 230 41,187 1,765 984 .. (461) 523 2,288
14,407 680 8,873 7,674 1,616 1,737 1,208 1,300 1,268 558 330 99 110 2,425 .. 700 42,985 2,157 1,284 .. (363) 921 3,078
14,805 680 9,347 7,747 1,628 1,734 1,159 1,324 1,261 584 326 91 110 2,501 .. 1,180 44,477 2,852 1,408 .. (323) 1,085 3,937
15,273 719 9,475 7,850 1,658 1,727 1,146 1,335 1,272 595 323 91 110 2,572 .. 2,080 46,226 3,033 1,560 .. (351) 1,209 4,242
The accompanying Notes are an integral part of these Statements.
144 | B.2 & B.3
GAAP SERIES TABLES
Forecast Statement of Financial Position

as at 30 June
($ million) Assets Cash and bank balances 1 Marketable securities and deposits Advances Receivables Inventories State-owned enterprises and Crown entities Other investments Physical assets Commercial forests State highways Intangible assets Forecast for future new capital spending Total Assets Liabilities Payables and provisions Currency issued Borrowings Pension liabilities Total Liabilities Total Assets less Total Liabilities Crown Balance Accumulated operating balance Revaluation reserve Crown Balance
Note
6 7 8 9 10
115 12,060 4,615 6,197 193 14,077 354 16,102 310 11,055 3 .. 65,081
45 9,067 5,873 5,439 280 15,114 432 16,076 359 10,847 3 315 63,850
191 10,650 5,896 6,037 220 15,628 306 16,187 310 11,148 448 .. 67,021
239 9,486 7,011 6,111 223 16,614 396 16,417 310 11,278 401 220 68,706
315 11,272 8,615 6,024 231 17,812 383 16,592 311 11,376 354 1,020 74,305
432 13,589 9,555 6,108 229 19,119 369 16,371 311 11,481 307 1,520 79,391
556 16,215 10,599 6,058 227 20,424 355 16,092 311 11,607 260 1,880 84,584
11
5,831 2,539 36,761 8,487 53,618 11,463
4,758 2,570 35,831 8,734 51,893 11,957
5,428 2,937 36,299 8,119 52,783 14,238
5,409 2,937 35,781 8,053 52,180 16,526
5,397 2,937 38,391 7,976 54,701 19,604
5,491 2,937 39,543 7,879 55,850 23,541
5,410 2,937 40,656 7,798 56,801 27,783
12
3,456 8,007 11,463
4,058 7,899 11,957
6,199 8,039 14,238
8,487 8,039 16,526
11,565 8,039 19,604
15,502 8,039 23,541
19,744 8,039 27,783
Marketable securities and deposits New Zealand Superannuation (NZS) Fund Other marketable securities and deposits Total Marketable securities and deposits
2001 Actual .. 12,060 12,060
2002 Previous Estimated 2003 2004 2005 2006 Budget Actual Forecast Forecast Forecast Forecast 617 8,450 9,067 600 10,050 10,650 1,890 7,596 9,486 3,898 7,374 11,272 6,277 7,312 13,589 8,944 7,271 16,215
B.2 & B.3 | 145
Forecast Statement of Movements in Equity

2002 Previous Estimated 2003 2004 2005 2006 Budget Actual Forecast Forecast Forecast Forecast 10,581 1,376 .. 1,376 .. 11,957 11,463 2,636 36 2,672 103 14,238 14,238 2,288 .. 2,288 .. 16,526 16,526 3,078 .. 3,078 .. 19,604 19,604 3,937 .. 3,937 .. 23,541 23,541 4,242 .. 4,242 .. 27,783
($ million) Opening Crown Balance Operating balance for the year Net revaluations Total Recognised Revenues and Expenses Recognition policy change Closing Crown Balance
Note
2001 Actual 8,583 1,409 (179) 1,230 1,650 11,463
12
146 | B.2 & B.3
GAAP SERIES TABLES
Forecast Statement of Cash Flows

($ million) Cash Flows from Operations Cash was Provided from
Direct Taxation
Individuals Source deductions Other persons Refunds Fringe benefit tax Total Individuals Corporate Gross companies Refunds Non-resident withholding tax Foreign-source dividend withholding payment Total Corporate Other withholding taxes Other direct taxation Total Direct Taxation
13,748 4,221 (1,175) 338 17,132
14,358 4,319 (1,094) 324 17,907
14,602 15,298 16,133 4,385 4,516 4,638 (1,210) (1,146) (1,133) 344 380 384 18,121 19,048 20,022
17,029 17,865 4,743 4,853 (1,121) (1,159) 389 394 21,040 21,953
5,377 (785) 738 98 5,428 1,043 2 23,605
5,518 (701) 679 36 5,532 1,046 2 24,487
5,353 (707) 634 149 5,429 1,013 2 24,565
5,401 (650) 638 122 5,511 1,075 2 25,636
5,898 (646) 692 56 6,000 1,084 2 27,108
6,175 (640) 716 56 6,307 1,084 2 28,433
6,272 (628) 737 56 6,437 1,085 2 29,477
Indirect Taxation
Goods and Services Tax Gross goods and services tax Refunds Total Goods and Services Tax Other indirect taxation Total Indirect Taxation Total Taxation Receipts Compulsory Fees, Fines, Penalties and Levies Other Receipts Interest, profits and dividends Sales of goods and services Other operating receipts Total Other Receipts Total Cash Provided from Operations Cash was Disbursed to Departmental outputs Other outputs Finance costs Subsidies Current transfers Social assistance grants Other transfers Forecast for future new spending Total Cash Disbursed to Operations Net Cash Flows from Operations
14,604 (5,657) 8,947 3,698 12,645 36,250 324
14,754 (5,418) 9,336 3,858 13,194 37,681 349
16,146 16,446 16,914 (6,180) (6,092) (6,127) 9,966 10,354 10,787 3,908 13,874 38,439 327 4,088 14,442 40,078 372 4,156 14,943 42,051 386
17,678 18,484 (6,391) (6,670) 11,287 11,814 4,216 15,503 43,936 399 4,282 16,096 45,573 419
892 622 383 1,897 38,471
755 644 301 1,700 39,730
1,175 653 370 2,198 40,964
1,012 674 300 1,986 42,436
1,132 628 291 2,051 44,488
1,224 624 284 2,132 46,467
1,398 626 285 2,309 48,301
4,749 16,008 2,499 133 12,910 250 .. 36,549 1,922
5,040 16,610 2,402 181 13,610 255 160 38,258 1,472
5,173 16,912 2,240 147 13,432 256 .. 38,160 2,804
5,328 17,781 2,264 173 13,689 260 230 39,725 2,711
5,243 18,435 2,390 178 14,188 257 700 41,391 3,097
5,199 19,055 2,471 155 14,614 256 1,180 42,930 3,537
5,222 19,325 2,549 155 15,099 256 2,080 44,686 3,615
B.2 & B.3 | 147
Forecast Statement of Cash Flows (continued)

2001 Actual 1,922 2002 Previous Estimated 2003 2004 2005 2006 Budget Actual Forecast Forecast Forecast Forecast 1,472 2,804 2,711 3,097 3,537 3,615
($ million) Subtotal (brought forward) Cash Flows from Investing Activities Cash was Provided from Sale of physical assets Total Cash Provided Cash was Disbursed to Purchase of physical assets Net increase in advances Net (sale)/purchase of investments Purchase of marketable securities and deposits by NZS Fund Other net purchase/(sale) of marketable securities and deposits Forecast for future new capital spending Total Cash Disbursed Net Cash Flows from Investing Activities Net Cash Flows from Operating and Investing Activities Cash Flows from Financing Activities Cash was Provided from Issue of circulating currency Net issue/(repayment) of Government stock Total Cash Provided Cash was Disbursed to Net repayment/(issue) of foreigncurrency borrowing Net repayment/(issue) of other New Zealand-dollar borrowing Total Cash Disbursed Net Cash Flows from Financing Activities Net Movement in Cash Opening Cash Balance FX gains/(losses) on opening cash balances Closing Cash Balance
75 75
91 91
124 124
83 83
56 56
39 39
31 31
1,205 617 (174) .. 1,001 .. 2,649 (2,574) (652)
1,288 1,318 294 600 (3,185) 315 630 (539) 933
1,271 1,264 1,367 586 (1,232) .. 3,256 (3,132) (328)
1,508 1,193 543 1,200 (2,453) 220 2,211 (2,128) 583
1,417 1,632 265 1,800 (222) 800 5,692 (5,636) (2,539)
1,020 957 163 2,011 28 500 4,679 (4,640) (1,103)
1,025 1,060 83 2,117 (15) 360 4,630 (4,599) (984)
303 1,066 1,369
.. 391 391
398 746 1,144
.. (31) (31)
.. 2,515 2,515
.. 1,136 1,136
.. 947 947
514 305 819 550 (102) 210 7 115
853 479 1,332 (941) (8) 53 .. 45
451 282 733 411 83 115 (7) 191
140 364 504 (535) 48 191 .. 239
.. (100) (100) 2,615 76 239 .. 315
(2) (82) (84) 1,220 117 315 .. 432
.. (161) (161) 1,108 124 432 .. 556
148 | B.2 & B.3
GAAP SERIES TABLES

2002 Previous Estimated 2003 2004 2005 2006 Budget Actual Forecast Forecast Forecast Forecast
($ million) Reconciliation Between the Forecast Net Cash Flows from Operations and the Operating Balance Net Cash Flows from Operations Items included in the operating balance but not in net cash flows from operations Valuation Changes Increase in National Provident Fund guarantee liability (Increase)/decrease in pension liabilities Unrealised net foreign exchange gains/(losses) Unrealised losses arising from changes in the value of commercial forests Total Valuation Changes Physical Asset Movements Depreciation (Loss)/gain on sale of assets Total Physical Asset Movements Other Non-cash Items Net surplus attributable to state-owned enterprises and Crown entities Accrued income from NZS Fund Loss on writedown of defence equipment Student Loans Other Total Other Non-cash Items
2001 Actual
1,922
1,472
2,804
2,711
3,097
3,537
3,615
(253) (164) 100 (40) (357)
.. 51 .. .. 51
.. 368 (17) .. 351
.. .. .. .. ..
.. .. .. .. ..
.. .. .. .. ..
.. .. .. .. ..
(925) (7) (932)
(879) .. (879)
(943) (2) (945)
(1,013) .. (1,013)
(1,059) .. (1,059)
(1,084) .. (1,084)
(1,106) .. (1,106)
103 .. (103) (61) 55 (6)
745 17 .. (99) .. 663
612 14 .. (67) (23) 536
523 90 .. (47) (47) 519
921 208 .. (44) (47) 1,038
1,085 368 .. (37) (47) 1,369
1,209 550 .. (41) (47) 1,671
Total Other Investing and Financing Items
177
..
(22)
..
..
..
..
Movements in Working Capital Increase/(decrease) in taxes receivable Decrease/(increase) in payables (Decrease)/increase in other receivables (Decrease)/increase in inventories Total Movements in Working Capital Operating Balance
737 11 (62) (81) 605 1,409
25 62 (84) 66 69 1,376
(27) 45 (133) 27 (88) 2,636
62 (6) 12 3 71 2,288
25 81 (112) 8 2 3,078
33 33 51 (2) 115 3,937
(5) 114 (45) (2) 62 4,242
B.2 & B.3 | 149

($ million) Reconciliation of Forecast Net Cash Flows from Operations with Forecast Net Cash Proceeds from Domestic Bonds Net Cash Flows from Operations Net purchase of physical assets Net increase in advances Net sale/(purchase) of investments Purchase of marketable securities and deposits by NZS Fund Forecast for future new capital spending Available to Repay Debt/(Required to be Financed) Financed by: Other net (purchase)/sale of marketable securities and deposits Total Investing Activities Used in: Net (repayment)/issue of other New Zealand-dollar borrowing Decrease/(increase) in cash Issue of circulating currency Net (repayment)/issue of foreign-currency borrowing Net Cash (Outflow)/Inflow to be Offset by Domestic Bonds Gross Cash Proceeds from Domestic Bonds Domestic bonds (market) Domestic bonds (non-market) Total Gross Cash Proceeds from Domestic Bonds Repayment of domestic bonds (market) Repayment of domestic bonds (non-market) Net Cash Proceeds from/(Repayments of) Domestic Bonds
2001 Actual
1,922 (1,130) (617) 174 .. ..
1,472 (1,197) (1,318) (294) (600) (315)
2,804 (1,147) (1,264) (1,367) (586) ..
2,711 (1,425) (1,193) (543) (1,200) (220)
3,097 (1,361) (1,632) (265) (1,800) (800)
3,537 (981) (957) (163) (2,011) (500)
3,615 (994) (1,060) (83) (2,117) (360)
349
(2,252)
(1,560)
(1,870)
(2,761)
(1,075)
(999)
(1,001) (652)
3,185 933
1,232 (328)
2,453 583
222 (2,539)
(28) (1,103)
15 (984)
(305) 102 303 (514) (414) (1,066)
(479) 8 .. (853) (1,324) (391)
(282) (83) 398 (451) (418) (746)
(364) (48) .. (140) (552) 31
100 (76) .. .. 24 (2,515)
82 (117) .. 2 (33) (1,136)
161 (124) .. .. 37 (947)
3,572 661 4,233 (2,651) (516) 1,066
3,570 .. 3,570 (2,582) (597) 391
3,703 199 3,902 (2,593) (563) 746
3,392 .. 3,392 (2,823) (600) (31)
5,559 478 6,037 (3,044) (478) 2,515
3,933 213 4,146 (2,797) (213) 1,136
3,822 .. 3,822 (2,875) .. 947
150 | B.2 & B.3
GAAP SERIES TABLES
Forecast Statement of Borrowings

as at 30 June
($ million) Outstanding Debt New Zealand-Dollar Debt Government stock Treasury bills Loans and foreign-exchange contracts Retail stock Total New Zealand-Dollar Debt Foreign-Currency Debt United States dollars Japanese yen European and other currencies Total Foreign-Currency Debt Total Outstanding Debt Less Financial Assets Marketable Securities and Deposits 1 New Zealand dollars United States dollars Japanese yen European and other currencies Total Marketable Securities and Deposits Advances and Cash Advances to state-owned enterprises and Crown entities Student loans Other advances Cash Total Advances and Cash Total Financial Assets Net Crown Debt
Note
2001 Actual
23,331 5,558 (272) 498 29,115
23,788 5,388 (763) 475 28,888
24,106 24,100 26,611 5,405 5,484 5,471 (374) (823) (711) 512 510 510 29,649 29,271 31,881
27,772 28,752 5,479 5,488 (730) (606) 510 510 33,031 34,144
4,780 1,432 1,434 7,646 36,761
3,799 1,562 1,582 6,943 35,831
4,249 448 1,953 6,650 36,299
4,278 279 1,953 6,510 35,781
4,276 279 1,955 6,510 38,391
4,277 279 1,956 6,512 39,543
4,277 279 1,956 6,512 40,656
3,971 5,093 1,548 1,448 12,060
1,154 3,909 1,775 1,612 8,450
3,352 4,304 487 1,907 10,050
1,053 4,373 268 1,902 7,596
836 4,367 268 1,903 7,374
781 4,362 268 1,901 7,312
744 4,359 268 1,900 7,271
6 6
261 4,143 211 115 4,730 16,790 19,971
939 4,776 158 45 5,918 14,368 21,463
890 4,798 208 191 6,087 16,137 20,162
1,314 5,531 166 239 7,250 14,846 20,935
2,148 6,295 172 315 8,930 16,304 22,087
2,300 7,075 180 432 9,987 17,299 22,244
2,536 7,863 200 556 11,155 18,426 22,230
Net New Zealand-dollar debt Net foreign-currency debt Net Crown Debt
1
20,495 (524) 19,971
21,816 (353) 21,463
20,210 20,968 22,115 (48) (33) (28) 20,162 20,935 22,087
22,263 22,245 (19) (15) 22,244 22,230
Marketable securities and deposits held by the NZS Fund are excluded from the calculation of net Crown debt.
B.2 & B.3 | 151
Statement of Actual Commitments

as at 31 March 2002
As at 31 March 2002 As at 30 June 2001
($ million) By Type Capital Commitments Specialist military equipment Land and buildings Other plant and equipment Investments Commitments of state-owned enterprises and Crown entities Total Capital Commitments Operating Commitments Non-cancellable accommodation leases Other non-cancellable leases Non-cancellable contracts for the supply of goods and services Other operating commitments Commitments of state-owned enterprises and Crown entities Total Operating Commitments Total Commitments By Term One year or less From one to two years From two to five years Over five years Total Commitments
549 370 26 266 798 2,009
639 383 41 15 619 1,697
797 1,730 1,872 814 3,343 8,556 10,565
842 1,713 367 2,213 2,471 7,606 9,303
4,099 2,524 1,927 2,015 10,565
3,618 2,051 1,754 1,880 9,303
The Statement of Actual Commitments includes commitments which are also included in the Forecast Statements of Financial Performance and Financial Position. The accompanying Notes are an integral part of these Statements.
152 | B.2 & B.3
GAAP SERIES TABLES
Statement of Actual Specific Fiscal Risks

Quantifiable contingent liabilities
As at 31 March 2002 387 3,305 479 1,777 5,948 As at 30 June 2001 371 3,594 571 1,965 6,501
($ million) Guarantees and indemnities Uncalled capital Legal proceedings and disputes Other quantifiable contingent liabilities Total Quantifiable Contingent Liabilities
Contingent liabilities of the Reserve Bank of New Zealand, state-owned enterprises and Crown entities are included in quantifiable contingent liabilities. Contingent liabilities to sub-entities are excluded.
Unquantified contingent liabilities

This part of the Statement lists those contingent liabilities of the Crown which cannot be quantified. Institutional Guarantees Commerce Commission indemnity for damages District Court Judges, Justices of the Peace, Coroners and Disputes Tribunal Earthquake Commission Fletcher Challenge Limited Ministry of Fisheries indemnity provided for delivery of registry services National Provident Fund Persons exercising investigating powers Public Trust Reserve Bank of New Zealand Other Unquantified Contingent Liabilities Accident Compensation Corporation Air New Zealand Bank of New Zealand Contaminated sites Crown research institutes Development Finance Corporation New Zealand Limited (under statutory management) District health boards Education legal claims Electricity Corporation of New Zealand Limited Housing New Zealand Corporation Indemnities against acts of war and terrorism Maui Gas Partners New Zealand Railways Corporation Pharmaceutical Management Agency Limited indemnity Purchasers of Crown operations Sale of Crown assets Tax liabilities Treaty of Waitangi claims Treaty of Waitangi claims settlement relativity payments Works Civil Construction Works Consultancy Services Actual contingent liabilities are discussed in detail in Chapter 5.
B.2 & B.3 | 153
Statement of Actual Specific Fiscal Risks (continued)

Quantified risks
($ million) Corrections Capital Projects Defence Capital Injections Education Auckland University Business School Education E-Learning Education School Property (391) capital and (188) operating across the outyears (1,000) over the next five years to ten years (25) capital in 2002/03 (11) in 2002/03 and (7) in outyears for capital (90) in 2002/03, (200) in 2003/04, and subsequent outyears for capital and (1) in 2002/03, (8) in 2003/04, (18) in 2004/05 and (29) in 2005/06 for operating (1) in 2002/03, increasing to (20) in 2005/06 and outyears (63) operating over four years (30) operating over five years (20) operating from 2003/04 (10) operating from 2004/05 up to (95) split between operating and capital
Energy Efficiency and Conservation Renewables Policy Energy Efficiency and Conservation National Strategy Health Southern Saltmarsh Mosquito Inland Revenue GST and Imported Services and Financial Services Review Inland Revenue Trans-Tasman Triangular Tax Relief Social Development Benefit Payment Systems
Many of these risks, if they crystallise, are covered by the forecast for future new spending and therefore have no impact on the forecasts.
Unquantified risks
Accident Insurance Medical Misadventure Agriculture and Forestry Painted Apple Moth Courts Supreme Court Defence Sale of Skyhawks and Aermacchi Trainers Education Capital Injections for Tertiary Education Institutions Education Centres of Research Excellence Education Collective Employment Agreements Education ECE Strategic Plan Education Improved Internet Access Education Partnerships for Excellence Education Pay Parity for Kindergarten Teachers Education Review of School Staffing Education School and Early Childhood Operational Funding Education School Property Code Education Tertiary Education Funding Education Wananga capital injection Health District health board deficits Health Population Based Funding Health Remove Asset Testing from Long Stay Care Inland Revenue Exemption for Overseas Earnings Inland Revenue Gaming Review Inland Revenue Risk Free Return Method Inland Revenue Taxation of Savings and Investment Vehicles, including Superannuation Funds Inland Revenue Tax Review of International Issues Police Capital Projects Prime Minister and Cabinet Climate Change Social Development Response to Joychild Report Transport Lease of Rail Assets Risks are stated as at 10 May 2002. Actual specific fiscal risks are discussed in detail in Chapter 5.
154 | B.2 & B.3
GAAP SERIES TABLES
Statement of Accounting Policies and Forecast Assumptions

General Accounting Policies and Forecast Assumptions
General Accounting Policies Accounting policy These Forecast Financial Statements comply with generally accepted accounting practice. The measurement base applied is historical cost adjusted for revaluations of physical assets (where appropriate), state highways, commercial forests and marketable securities and deposits held for trading purposes. Revaluations are made to reflect the forecast service potential or economic benefit obtained through control of the assets. The accrual basis of accounting has been used. Forecast assumptions For forecast purposes, no revaluations are projected beyond the current year.
General Forecast Assumptions

Finalisation dates The Forecast Financial Statements were finalised on 10 May 2002 and incorporate all Government decisions and circumstances communicated up to 10 May 2002. Macroeconomic assumptions A summary of the economic assumptions that are particularly relevant to the fiscal forecasts (along with the 2001/02 assumptions used in the 2001 Budget Economic and Fiscal Update) are provided in the following table:
B.2 & B.3 | 155
Key economic assumptions

2001/02 June years Real GDP (production based measure) (annual average % change) Nominal GDP ($ million) Consumer Price Index (annual average %) Interest rates Government 10-year bonds (quarterly average %) 90-day bill rate (quarterly average %) Household Labour Force Survey Survey unemployment rate (annual average %) Full-time equivalent employment (annual average % change) Wages hourly earnings (annual average % change) Trade Weighted Index (quarterly average)
Source: The Treasury
2002/03 Budget
2003/04 Budget
2004/05 Budget
2005/06 Budget
Previous Budget
Budget
2.7 117,323 2.1
3.0 120,309 2.4
3.1 124,964 2.4
3.1 131,293 1.9
2.8 137,201 1.6
2.8 143,026 1.5
6.1 6.1
6.9 5.7
6.4 6.0
6.2 6.0
6.2 6.0
6.2 6.0
5.4
5.3
5.4
5.2
5.1
5.2
0.6
2.7
1.6
1.2
1.4
1.2
3.8
3.6
3.7
3.5
3.5
2.9
52.9
53.0
54.1
54.8
55.0
55.0
For the purposes of calculating net debt, the forecasts assume that the nominal exchange rate remains fixed at 31 March 2002 exchange rates. Projected exchange rate losses or gains are not included in the forecasts.
156 | B.2 & B.3
GAAP SERIES TABLES
Specific Accounting Policies and Forecast Assumptions

Forecast periods Accounting policy The reporting periods covered by these Forecast Financial Statements are the years ending 30 June 2002, 30 June 2003, 30 June 2004, 30 June 2005 and 30 June 2006. Certain state-owned enterprises and Crown entities have different reporting periods from the Crown. These entities have been combined on the basis of the balance dates outlined in Note 8 of the Forecast Financial Statements. Forecast assumptions The forecasts for 30 June 2002 have been prepared using actual data to 31 March 2002. Transactions for the remainder of the year are forecast in accordance with these accounting policies and forecast assumptions.
Basis of Combination
Accounting policy Ministers of the Crown, departments, offices of Parliament and the Reserve Bank of New Zealand are combined using the purchase method of combination. Corresponding assets, liabilities, revenues and expenses are added together line by line. Transactions and balances between these sub-entities are eliminated on combination. State-owned enterprises and Crown entities are combined using the modified equity method of combination. This records the Crown's share of these entities forecast net assets, including their surpluses and deficits. Unrealised surpluses and deficits on interentity transactions and balances not carried out on an arms-length basis are eliminated. Other inter-entity transactions and balances are not eliminated. Commitments and contingent liabilities of state-owned enterprises and Crown entities are reported in the Statement of Commitments and the Statement of Specific Fiscal Risks.
Revenue
Revenue levied through the Crown's sovereign power Accounting policy The Crown provides many services and benefits that do not give rise to revenue. Further, payment of tax does not of itself entitle a taxpayer to an equivalent value of services or benefits, as there is no direct relationship between paying tax and receiving Crown services and transfers. Such revenue is received through the exercise of the Crowns sovereign power.
B.2 & B.3 | 157
Where possible, revenue is recognised at the time the debt to the Crown arises, as identified in the following table:
Revenue Type Source deductions (PAYE) Residents' withholding taxes1 Revenue Recognition Point When an individual is forecast to earn income that is subject to PAYE When an individual is forecast to receive interest or dividends subject to deduction at source When forecast benefits are provided that give rise to FBT Forecast payment due date Forecast assessment filed date When the liability to the Crown is forecast to be incurred When goods are forecast to be subject to duty When payment for the fee or charge is forecast to be made When the liability to the Crown is forecast to be incurred When the debt to the Crown is forecast to arise
Fringe benefit tax (FBT) Provisional tax2 Terminal tax

2
Goods and services tax Excise duty Road user charges and motor vehicle fees Stamp, cheque and credit card duties Other indirect taxes
1
Corresponds to forecast withholding taxes on residents interest and dividend income in Note 1 to the Forecast Financial Statements. Provisional and terminal taxes are paid by other persons and companies (refer to Note 1 to the Forecast Financial Statements).
Revenue earned through operations Accounting policy Where revenue will be earned by the Crown in exchange for the provision of outputs (products or services) to third parties, the Crown earns its revenue through operations. This revenue is recognised when it is forecast to be earned. Investment income Accounting policy Investment income is recognised in the period in which it is forecast to be earned. Premiums Accounting policy Premiums arising on the issue of a debt instrument, up to the forecast finalisation date, are treated as a reduction in the cost of borrowing. Premiums are recognised in the Forecast Statement of Financial Position on issue, and are amortised over the period of the instrument on a yield-to-maturity basis.
158 | B.2 & B.3
GAAP SERIES TABLES
Premiums on forecast bond sales with the same maturity date and coupon rate as bonds already on issue are calculated using the same maturity and coupon rate information. These premiums are treated on issue as a reduction in the cost of borrowing, and in general are amortised over the period of the instrument on a yield-to-maturity basis. The forward margin associated with forward foreign-exchange contracts is amortised over the period of the contract on a straight-line basis. Forecast assumption Forecast bond sales with new maturity dates are assumed to be issued at par value, and therefore no premiums are forecast for these instruments. Gains General Accounting policy Realised gains arising from the sale of assets or the early repurchase of liabilities are recognised in the Forecast Statement of Financial Performance in the period in which the transactions are forecast to occur. Foreign-currency monetary assets and liabilities Accounting policy Unrealised gains are recognised in the Forecast Statement of Financial Performance. Forecast assumption Forecasts of foreign-currency monetary assets and liabilities for the year ending 30 June 2002 and the other forecast periods use the exchange rates prevailing on 31 March 2002. As a consequence, no realised or unrealised exchange gains are forecast for the entire forecast period. Physical assets Accounting policy To the extent that a forecast gain reverses a loss previously charged to the Statement of Financial Performance, the gain is credited to the Forecast Statement of Financial Performance. Forecast assumption The 30 June 2002 forecasts for the value of physical assets use the valuations as recorded in the Crown Financial Statements for the year ended 30 June 2001 and any additional actual valuations that have occurred up to 31 March 2002. The value of physical assets for the other forecast periods is forecast using the same valuation as that used for the 30 June 2002 forecasts. As a consequence, no realised or unrealised gains are forecast for the entire forecast period.
B.2 & B.3 | 159
Investments and marketable securities held for investment Forecast assumption All investments and marketable securities held for investment that are forecast to be held after the forecast finalisation date are assumed to be held to maturity. Therefore, no gains are forecast for these assets.
Expenses
General Accounting policy Expenses are recognised in the financial periods to which they are forecast to relate. Welfare benefits Accounting policy Welfare benefits are recognised in the reporting periods during which it is forecast an application for a benefit has been received and the eligibility criteria met. Grants and subsidies Accounting policy Where grants and subsidies are discretionary until payment, the expense is recognised when the payment is forecast to be made. Otherwise, the expense is recognised when it is forecast that the specific criteria will be fulfilled and notice given to the Crown. Treaty of Waitangi settlements Forecast assumption There is a multi-year appropriation (MYA) established for the payment of claims associated with Treaty of Waitangi settlements. The actual amount expensed in any one year may be greater or less than the amount forecast for that particular year, since actual expenses depend on the settlements reached. Discounts Accounting policy Discounts arising on the issue of debt instruments up to the forecast finalisation date are treated as an increase in the cost of borrowings. Discounts are recognised in the Forecast Statement of Financial Position on issue, and are amortised over the period of the instrument on a yield-to-maturity basis. Discounts on forecast bond sales with the same maturity date and coupon rate as bonds already on issue are calculated using the same maturity and coupon rate information. These discounts are treated on issue as an increase in the cost of borrowing, and in general are amortised over the period of the instrument on a yield-to-maturity basis.
160 | B.2 & B.3
GAAP SERIES TABLES
Forecast assumption Forecast bond sales with new maturity dates are assumed to be issued at par value, and therefore no discounts are forecast for these instruments. Losses General Accounting policy Forecast realised losses arising from the sale of assets or the early repurchase of liabilities are recognised in the Forecast Statement of Financial Performance in the period in which the transaction is forecast to occur. Foreign-currency monetary assets and liabilities Accounting policy Unrealised losses are recognised in the Forecast Statement of Financial Performance. Forecast assumption The 30 June 2002 forecasts for foreign-currency monetary assets and liabilities use the exchange rates prevailing on 31 March 2002. Forecasts of foreign-currency monetary assets and liabilities for the other forecast periods are based on the exchange rates used for the 30 June 2002 forecast. As a consequence, no realised or unrealised exchange losses are forecast for these years. Physical assets and liabilities Accounting policy Unrealised losses are first applied against the revaluation reserve for that class of asset. The balance, if any, is charged to the Forecast Statement of Financial Performance. Forecast assumption The 30 June 2002 forecasts for the value of physical assets use valuations as recorded in the Crown Financial Statements for the year ended 30 June 2001, and any additional actual valuations that have occurred up to 31 March 2002. The value of physical assets for the other forecast periods is forecast using the same valuation used for the 30 June 2002 forecasts. As a consequence, no realised or unrealised losses are forecast beyond the current year. Investments and marketable securities held for investment Forecast assumption All investments and marketable securities held for investment that are forecast to be held after the forecast finalisation date are assumed to be held to maturity. Therefore, no losses are forecast for these assets.
B.2 & B.3 | 161
Foreign-currency transactions Accounting policy Short-term transactions covered by forward exchange contracts are translated into New Zealand dollars using the forward rates specified in those contracts. Other transactions in foreign currencies are translated into New Zealand dollars using the exchange rates prevailing on 31 March 2002. Forecast exchange gains or losses arising on translation of these transactions are recognised in the Forecast Statement of Financial Performance. The resulting exchange gains or losses are included in the Forecast Statement of Financial Performance in the period in which they are forecast to arise. The forward margin associated with existing forward exchange contracts is amortised over the period of the contract on a straight-line basis. Forecast assumption Outstanding foreign-exchange contracts are translated using the exchange rate prevailing on 31 March 2002. For forecasting purposes, the exchange rates prevailing on 31 March 2002 are assumed to prevail throughout the other forecast periods. Depreciation Accounting policy Depreciation is charged on a straight-line basis at rates calculated to allocate the cost or valuation of an asset, less any forecast residual value, over its estimated useful life. Typically, the estimated useful lives of different classes of assets are as follows:
Freehold buildings Specialist military equipment Other plant and equipment State highways: Pavement (surfacing) Pavement (other) Bridges 7 years 36 years 90 to 100 years 25 to 60 years 5 to 25 years 3 to 25 years
Assets
Foreign monetary assets Accounting policy Foreign monetary assets existing at the forecast finalisation date and subject to forward exchange contracts are translated at the contract rate. Other foreign-currency monetary assets are translated at the exchange rates prevailing on 31 March 2002.
162 | B.2 & B.3
GAAP SERIES TABLES
Forecast assumption For forecasting purposes, the exchange rates on 31 March 2002 are assumed to prevail throughout the other forecast periods. Receivables and advances Accounting policy Receivables and advances are recorded at the amounts forecast to be collected in cash. Inventories Accounting policy Inventories, except for unissued currency stocks, existing at the forecast finalisation date are recorded at the lower of cost and net realisable value. Inventories forecast to be acquired after that date are recorded at the forecast cost. Unissued currency stocks are recorded as inventory at the cost of acquisition and expensed when issued. Investments Marketable securities held for trading purposes Accounting policy Marketable securities held for trading purposes at the forecast finalisation date are recorded at fair value. Marketable securities that are forecast to be acquired after that date and held for trading purposes are recorded at forecast cost of acquisition. Equity investments Accounting policy Equity investments existing at the forecast finalisation date (other than those forming part of the reporting entity) are recorded at the lower of forecast cost and fair value. Equity investments which are forecast to be purchased after that date are recorded at the forecast cost. Other investments Accounting policy Other investments existing at the forecast finalisation date, including marketable securities held for investment, are recorded at the lower of cost and fair value. Other investments that are forecast to be purchased after that date are valued at the forecast cost.
B.2 & B.3 | 163
Investment sales Forecast assumption The proceeds from sales of investments or entities are only included in the forecasts when those sales have been contractually confirmed at the forecast finalisation date. Physical assets Accounting policy Revaluations are made to reflect the service potential or economic benefit obtained through control of assets. Revaluation to fair value is based on the fair value of the asset less estimated disposal costs. Where an asset is recorded at its depreciated replacement cost, depreciated replacement cost is based on the estimated present cost of construction, reduced by factors for age and deterioration of the asset. Physical assets are revalued at least every three years where appropriate. Land and buildings Accounting policy Holdings of land and buildings at the forecast finalisation date are recorded at the latest available valuation calculated on a fair value basis. In cases where valuations conducted in accordance with New Zealand Institute of Valuers' standards are not available, valuations conducted in accordance with the Rating Valuation Act 1998 have been used. Land and buildings forecast to be purchased after the forecast finalisation date are valued at their forecast cost. Forecast assumption Valuations are assumed to remain constant over the forecast period. Specialist military equipment Accounting policy Specialist military equipment existing at the forecast finalisation date is valued at depreciated replacement cost established through specialist assessment by New Zealand Defence Force advisers. Specialist military equipment forecast to be purchased after that date is valued at forecast cost. Other plant and equipment Accounting policy Other plant and equipment (including motor vehicles and office equipment) existing at forecast finalisation date is recorded at cost less accumulated depreciation. Other plant and equipment forecast to be purchased after that date is recorded at forecast cost.
164 | B.2 & B.3
GAAP SERIES TABLES
Other physical assets for which an objective estimate of market value is difficult to obtain Accounting policy Such assets (national parks, for example) existing at the forecast finalisation date are recorded at the best estimate of fair value. Any such assets forecast to be acquired after that date are valued at forecast cost. Forecast assumption The value is assumed to be constant over the other forecast periods. State highways Accounting policy State highways existing at the forecast finalisation date are recorded at depreciated replacement cost, based on the estimated present cost of constructing the existing asset by the most appropriate method of construction. State highways forecast to be developed after that date are valued at forecast cost. Land associated with the state highways is valued using an opportunity cost based on adjacent use, as an approximation of fair value. Forecast assumption The value is assumed to be constant over the other forecast periods. Commercial forests Accounting policy Commercial forests are recorded at forecast fair value. This takes into account age, quality of timber, market expectations and the forest management plan. Forecast assumption Commercial forests are valued at an estimate of fair value using discounted cash flow techniques. Post-tax cash flows and three-year rolling average log prices have been used. Log prices are assumed to be constant over the forecast period. Intangible assets Accounting policy Identifiable intangible assets existing at the forecast finalisation date are recorded at cost less accumulated amortisation and accumulated impairment losses or if an active market exists identifiable intangible assets are recorded at fair value. Forecast assumption The value is assumed to be constant over the other forecast periods.
B.2 & B.3 | 165
Liabilities
Borrowings Accounting policy In the Forecast Statement of Financial Position, borrowings, including currency swaps existing at the forecast finalisation date, are recorded at nominal value adjusted for the unamortised portion of the premium or discount on issue. Borrowings forecast to be raised after that date are recorded at forecast cost. Forecast assumption Forecasts of borrowings incorporate a number of technical assumptions regarding the use of the Crowns fiscal surplus for domestic debt reduction. These assumptions may not reflect the actual future composition of the domestic debt programmes, as these decisions have yet to be made. Foreign monetary liabilities Accounting policy Foreign monetary liabilities existing at the forecast finalisation date and subject to forward exchange contracts are translated at contract rates. Other foreign-currency monetary liabilities are translated at exchange rates prevailing on 31 March 2002. Forecast assumption For forecasting purposes, the exchange rates prevailing on 31 March 2002 are assumed to prevail throughout the other forecast periods. Pension liabilities Forecast assumption Forecasts of Government Superannuation Fund pension liabilities in respect of the contributory service of superannuation scheme members are based on financial assumptions applied to the latest actuarial value of the Crown's liability for pension payments net of the scheme's assets, adjusted in future years for any projected changes in demographic assumptions. Currency issued Accounting policy Currency (including demonetised currency) issued at the forecast finalisation date or forecast to be issued after that date is recognised at face value. The face value of collectors' currency is recorded as a contingent liability.
166 | B.2 & B.3
GAAP SERIES TABLES
Leases Accounting policy Finance leases transfer to the Crown as lessee substantially all the risks and rewards incident on the ownership of a leased asset. The obligations under such forecast leases are capitalised at the forecast present value of the minimum lease payments. The capitalised values are amortised over the period forecast for benefits from their use to arise. Forecast operating leases, where the lessors substantially retain the risks and rewards of ownership, are recognised in a systematic manner over the forecast term of the lease. The cost of forecast leasehold improvements is capitalised and amortised over the forecast unexpired period of the lease or the estimated useful life of the improvements, whichever is the shorter. Employee entitlements Accounting policy Forecast liabilities for annual leave are recognised as they are forecast to accrue to employees. Provision is also made for forecast long-service and retiring leave obligations to employees. Other liabilities Accounting policy All other liabilities are recorded at the forecast obligation to pay.
Commitments
The commitments reported in these Forecast Financial Statements are actual commitments at 31 March 2002. Existing commitments include operating and capital commitments arising from noncancellable contractual or statutory obligations. Interest commitments on debts and commitments relating to employment contracts are not included.
Specific Fiscal Risks

Accounting policy The specific fiscal risks reported in these Forecast Financial Statements are the actual risks existing at 10 May 2002 and contingent liabilities as at 31 March 2002. They include existing contingent liabilities, which are recognised at the point the contingency is evident. The Statement of Specific Fiscal Risks has been prepared in accordance with sections 10(3)(b) and 11 of the Fiscal Responsibility Act 1994.
B.2 & B.3 | 167
Changes in Accounting Policies

All policies have been applied on a consistent basis during the forecast period. There have been no changes in accounting policies during the period.
New accounting standards

Financial Reporting Standard 3: Accounting for property, plant and equipment (FRS 3), takes effect from the 2001/02 financial year. The principles of FRS 3 were applied early to the state highway network resulting in an adjustment to the 2000/01 Crown financial statements. Other components of physical assets will be revalued in accordance with FRS 3 as at 30 June 2002 and beyond. There are likely to be some substantial revaluation movements resulting from the revaluation exercises as they occur. Financial Reporting Standard 15: Provisions, contingent liabilities and contingent assets (FRS 15) also takes effect from the 2001/02 financial year. Application of the requirements of FRS 15 will likely result in some adjustments to reported liabilities.
Recognition of Department of Conservation visitor assets

The Crown financial statements as at 30 June 2002 will recognise, for the first time, Department of Conservation visitor assets (conservation estate huts and tracks for example). To recognise these assets for the first time an adjustment within the Estimated Actual forecasts has been made to equity (i.e. the Crown balance/net worth) in accordance with FRS 3.
Changes in Forecast Assumptions

Changes to the forecast assumptions used for the forecasts published in the 2001 Budget Economic and Fiscal Update are outlined on page 156.
168 | B.2 & B.3
GAAP SERIES TABLES
Notes to the Forecast Financial Statements

($ million) 2001 Actual 2002 Previous Estimated 2003 2004 2005 2006 Budget Actual Forecast Forecast Forecast Forecast
NOTE 1: Direct Taxation

Income Tax Individuals Source deductions Other persons Refunds Fringe benefit tax Total Individuals Corporate Tax Gross companies tax Refunds Non-resident withholding tax Foreign-source dividend withholding payment Total Corporate Tax Other Income Tax Resident withholding tax on interest income Resident withholding tax on dividend income Estate and gift duties Total Other Income Tax Total Direct Taxation 13,703 3,871 (790) 342 17,126 4,954 (123) 760 71 5,662 990 83 2 1,075 23,863 14,358 3,881 (656) 336 17,919 4,938 (121) 685 36 5,538 993 53 2 1,048 24,505 14,602 15,298 16,133 3,989 4,140 4,267 (814) (771) (762) 356 381 385 18,133 19,048 20,023 4,719 (195) 657 149 5,330 986 27 2 1,015 24,478 4,932 (122) 640 122 5,572 1,026 49 2 1,077 25,697 5,416 (134) 692 56 6,030 1,039 45 2 1,086 27,139 17,029 17,865 4,376 4,473 (754) (779) 390 395 21,041 21,954 5,722 (143) 716 56 6,351 1,038 46 2 1,086 28,478 5,791 (146) 737 56 6,438 1,038 47 2 1,087 29,479
NOTE 2: Indirect Taxation

Goods and Services Tax Gross goods and services tax Refunds Total Goods and Services Tax Other Indirect Taxation Petroleum fuels Tobacco products Customs duty Road user charges Alcoholic beverages Gaming duties Motor vehicle fees Energy resources levies Stamp, cheque and credit card duties Total Other Indirect Taxation Total Indirect Taxation 15,133 (6,007) 9,126 15,054 (5,718) 9,336 16,511 16,796 17,214 (6,545) (6,442) (6,427) 9,966 10,354 10,787 17,878 18,584 (6,591) (6,770) 11,287 11,814
810 764 648 532 436 206 181 111 61 3,749 12,875
806 802 649 575 447 220 181 96 68 3,844 13,180
846 818 657 570 451 242 181 107 61 3,933 13,899
938 807 680 602 452 266 182 101 62 4,090 14,444
943 808 697 623 462 279 184 97 65 4,158 14,945
949 806 708 646 469 292 185 93 68 4,216 15,503
957 802 719 672 475 304 186 91 71 4,277 16,091
B.2 & B.3 | 169

NOTE 3: Investment Income

Interest Income Marketable securities, deposits, mortgages and cash balances Advances Student loans Other entities Total Interest Income Dividend Income State-owned enterprises Other Total Dividend Income Other Investment Income Gain/(loss) on marketable securities and deposits NZS Fund investment income Gain on sale of 2GHz radio spectrum licences Other Total Other Investment Income Total Investment Income
463 289 48 800
305 326 66 697
377 332 80 789
255 386 104 745
330 451 190 971
364 512 232 1,108
382 569 222 1,173
304 21 325
199 13 212
333 74 407
412 53 465
347 21 368
303 25 328
333 23 356
102 .. 140 2 244 1,369
.. 25 .. .. 25 934
(2) 14 .. 11 23 1,219
.. 112 .. 15 127 1,337
.. 261 .. 15 276 1,615
.. 459 .. 9 468 1,904
.. 688 .. 15 703 2,232
NOTE 4: Other Operational Revenue

Recoveries from the Accident Compensation Corporation Petroleum royalties Cost recovery income from Fisheries Income from Earthquake Commission Other Total Other Operational Revenue 106 82 29 10 154 381 97 32 27 10 139 305 105 42 31 10 210 398 101 33 34 10 119 297 101 25 33 10 122 291 101 24 31 10 120 286 101 24 30 10 119 284
170 | B.2 & B.3
GAAP SERIES TABLES

NOTE 5: Expenses by Input Type

Subsidies and transfer payments (see analysis below) Operating expenses (see analysis below) Personnel Personnel expenses (excluding pension expenses) GSF pension expenses Movement in unfunded pension liability Other pension expenses Depreciation Physical assets State highways Rental and leasing costs Loss/(gain) on sale of assets Finance costs (see analysis below) Net foreign-exchange losses/(gains) on liabilities Net foreign-exchange (gains)/losses on assets Forecast for future new spending (see analysis below) Total Expenses Analysis of Subsidies and Transfer Payments Social assistance grants New Zealand Superannuation Community Wage Unemployment Benefit Domestic Purposes Benefit Family Support Student allowances Other social assistance grants Subsidies Other transfer payments Official development assistance Other Total Subsidies and Transfer Payments Analysis of Operating Expenses Education purchases Early childhood education Primary and secondary education Tertiary education and training Health purchases Science purchases Other operating expenses Total Operating Expenses Analysis of Finance Costs Interest New Zealand dollars Foreign currencies Other finance costs Total Finance Costs Analysis of Forecast for Future New Spending 2001/02 contingency provision 2002/03 Budget contingency provision 2003/04 indicative new spending 2004/05 indicative new spending 2005/06 indicative new spending Total Forecast for Future New Spending 13,274 17,719 2,632 691 164 56 751 174 282 7 2,483 404 (451) .. 38,186 13,886 18,307 2,762 718 (51) 53 785 94 256 .. 2,395 .. .. 160 39,365 13,656 18,681 2,829 707 (368) 53 13,972 19,681 2,954 671 .. 50 14,476 20,370 2,950 680 .. 50 857 202 275 .. 2,425 .. .. 700 42,985 14,880 20,880 2,946 680 .. 51 869 215 275 .. 2,501 .. .. 1,180 44,477 15,363 21,081 2,978 719 .. 51 877 229 276 .. 2,572 .. .. 2,080 46,226
764 823 179 190 278 277 2 .. 2,303 2,339 (575) .. 639 .. .. 230 39,148 41,187
5,273 1,849 .. 1,444 878 391 3,073 115 226 25 13,274
5,472 .. 1,527 1,489 899 428 3,692 125 227 27 13,886
5,457 .. 1,406 1,486 870 411 3,644 125 223 34 13,656
5,645 .. 1,364 1,521 870 441 3,738 127 230 36 13,972
5,888 .. 1,419 1,570 872 458 3,871 135 227 36 14,476
6,112 .. 1,451 1,599 874 473 3,985 125 226 35 14,880
6,399 .. 1,468 1,631 876 490 4,113 125 226 35 15,363
331 3,505 1,508 6,807 467 5,101 17,719
357 3,677 1,635 6,967 478 5,193 18,307
362 3,642 1,733 7,011 463 5,470 18,681
387 3,653 1,892 7,639 490 5,620 19,681
393 3,698 1,958 8,100 507 5,714 20,370
395 3,700 2,022 8,608 511 5,644 20,880
398 3,712 2,065 8,716 524 5,666 21,081
2,035 428 20 2,483
2,044 328 23 2,395
1,966 295 42 2,303
2,064 245 30 2,339
2,127 268 30 2,425
2,181 295 25 2,501
2,248 301 23 2,572
.. .. .. .. .. ..
160 .. .. .. .. 160
.. .. .. .. .. ..
.. 230 .. .. .. 230
.. 200 500 .. .. 700
.. 180 500 500 .. 1,180
.. 180 500 500 900 2,080
B.2 & B.3 | 171

NOTE 6: Advances
Advances to State-owned Enterprises and Crown Entities Housing New Zealand Corporation District health boards/Residual Health Management Unit Other state-owned enterprises and Crown entities Total Advances to State-owned Enterprises and Crown Entities Other Advances Student loans Contact Energy Limited Maori development rural lending Forestry encouragement loans Other Total Other Advances Total Advances Analysis of Student Loans Outstanding balance Total loans outstanding (including interest) Total provisions (capital and interest) Total Student Loans Movement during the year Opening balance Amount advanced in current year Interest accrued on outstanding loan balances Repayment of base capital Repayment of accrued interest Interest written off and movement in provision for interest write-offs and doubtful debts Other movements Closing Balance
163 53 45 261
643 296 .. 939
639 224 27 890
737 549 28 1,314
1,091 1,057 .. 2,148
1,137 1,163 .. 2,300
1,177 1,359 .. 2,536
4,143 118 38 29 26 4,354 4,615
4,776 48 58 30 22 4,934 5,873
4,798 48 42 30 88 5,006 5,896
5,531 .. 42 28 96 5,697 7,011
6,295 .. 42 27 103 6,467 8,615
7,075 .. 42 27 111 7,255 9,555
7,863 .. 42 26 132 8,063 10,599
4,655 (512) 4,143
5,355 (579) 4,776
5,368 (570) 4,798
6,187 (656) 5,531
7,035 (740) 6,295
7,900 (825) 7,075
8,779 (916) 7,863
3,523 867 289 (198) (123) (227) 12 4,143
4,155 963 326 (250) (157) (269) 8 4,776
4,143 959 333 (243) (148) (253) 7 4,798
4,798 1,052 386 (279) (175) (259) 8 5,531
5,531 1,124 451 (324) (206) (289) 8 6,295
6,295 1,182 512 (372) (240) (310) 8 7,075
7,075 1,240 569 (419) (274) (336) 8 7,863
NOTE 7: Receivables
Taxes receivable Accounts receivable Receivable from the sale and purchase of Maui gas Prepayments Total Receivables 4,962 1,024 111 100 6,197 4,437 856 103 43 5,439 4,935 923 109 70 6,037 4,997 951 97 66 6,111 5,022 844 98 60 6,024 5,055 875 118 60 6,108 5,050 865 83 60 6,058
172 | B.2 & B.3
GAAP SERIES TABLES

NOTE 8: Financial Interest in State-Owned Enterprises and Crown Entities

Surplus State-owned enterprises Crown entities Total Surplus Dividends and Other Distributions State-owned enterprises Crown entities Total Dividends and Other Distributions Net Equity State-owned enterprises Crown entities Total Net Equity Balance dates All state-owned enterprises and significant Crown entities have a balance date of 30 June except for the following: State-owned enterprises Timberlands West Coast Limited Significant Crown entities School boards of trustees Tertiary education institutions Minority Interests All state-owned enterprises and Crown entities are 100% owned by the Crown. The ownership interest in Air New Zealand is 82%. Air New Zealand forecast information is included within the total SOE forecast information. 31 March 31 December 31 December 432 (8) 424 307 646 953 395 620 1,015 486 498 984 586 698 1,284 614 794 1,408 700 860 1,560
304 17 321
199 9 208
333 70 403
412 49 461
347 16 363
303 20 323
333 18 351
5,554 8,523 14,077
5,643 9,471 15,114
6,253 9,375 15,628
6,327 10,287 16,614
6,566 11,246 17,812
6,924 12,195 19,119
7,291 13,133 20,424
B.2 & B.3 | 173

NOTE 9: Physical Assets

By Type
Cost or Valuation Land Properties intended for sale Buildings Specialist military equipment Other assets Other plant and equipment Total Cost or Valuation Accumulated Depreciation Buildings Specialist military equipment Other assets Other plant and equipment Total Accumulated Depreciation Net Book Value Land Properties intended for sale Buildings Specialist military equipment Other assets Other plant and equipment Total Net Book Value
1,844 464 8,654 2,686 2,688 2,213 18,549
1,887 446 9,066 2,780 2,639 2,571 19,389
1,871 441 9,179 2,828 2,686 2,475 19,480
1,888 425 9,761 3,022 2,676 2,685 20,457
1,881 419 10,185 3,369 2,695 2,856 21,405
1,882 416 10,428 3,437 2,703 2,988 21,854
1,885 417 10,750 3,352 2,711 3,112 22,227
729 421 5 1,292 2,447
1,085 594 5 1,629 3,313
1,300 580 9 1,404 3,293
1,671 759 11 1,599 4,040
2,049 955 13 1,796 4,813
2,340 1,155 15 1,973 5,483
2,723 1,243 17 2,152 6,135
1,844 464 7,925 2,265 2,683 921 16,102
1,887 446 7,981 2,186 2,634 942 16,076
1,871 441 7,879 2,248 2,677 1,071 16,187
1,888 425 8,090 2,263 2,665 1,086 16,417
1,881 419 8,136 2,414 2,682 1,060 16,592
1,882 416 8,088 2,282 2,688 1,015 16,371
1,885 417 8,027 2,109 2,694 960 16,092
Movements
Cost or Valuation Opening balance Net additions Revaluations Total Cost or Valuation Accumulated Depreciation Opening balance Disposals Depreciation charged for the period Revaluations Total Accumulated Depreciation Net Physical Assets
18,507 905 (863) 18,549
18,534 855 .. 19,389
18,549 887 44 19,480
19,480 977 .. 20,457
20,457 948 .. 21,405
21,405 449 .. 21,854
21,854 373 .. 22,227
2,535 (145) 751 (694) 2,447 16,102
2,568 (40) 785 .. 3,313 16,076
2,447 92 764 (10) 3,293 16,187
3,293 (76) 823 .. 4,040 16,417
4,040 (84) 857 .. 4,813 16,592
4,813 (199) 869 .. 5,483 16,371
5,483 (225) 877 .. 6,135 16,092
By Holding
Freehold assets Leasehold assets Net Physical Assets
16,062 40 16,102
16,037 39 16,076
16,144 43 16,187
16,376 41 16,417
16,551 41 16,592
16,330 41 16,371
16,051 41 16,092
174 | B.2 & B.3
GAAP SERIES TABLES

NOTE 10: State Highways

Cost or Valuation Opening balance Recognition adjustment Net additions Revaluations Total Cost or Valuation Accumulated Depreciation Opening balance Depreciation charged for the period Revaluations Total Accumulated Depreciation Total State Highways 8,911 1,650 300 194 11,055 10,788 .. 245 .. 11,033 11,055 .. 272 .. 11,327 11,327 .. 320 .. 11,647 11,647 .. 300 .. 11,947 11,947 .. 320 .. 12,267 12,267 .. 355 .. 12,622
.. 174 (174) .. 11,055
92 94 .. 186 10,847
.. 179 .. 179 11,148
179 190 .. 369 11,278
369 202 .. 571 11,376
571 215 .. 786 11,481
786 229 .. 1,015 11,607
NOTE 11: Payables and Provisions

Accounts payable Accruals and provisions Taxes repayable National Provident Fund guarantee Provisions for employee entitlements Total Payables and Provisions 1,631 1,193 1,907 686 414 5,831 1,780 409 1,711 480 378 4,758 2,198 194 1,943 686 407 5,428 2,192 193 1,938 686 400 5,409 2,023 360 1,933 686 395 5,397 2,253 234 1,928 686 390 5,491 2,112 300 1,928 686 384 5,410
NOTE 12: Revaluation Reserve

Opening Balance Net revaluations State-owned enterprises and Crown entities Land and buildings State highways Specialist military equipment Other assets Total Net Revaluations Transfer to accumulated operating balance Closing Revaluation Reserve 8,201 368 85 (258) 4 (378) (179) (15) 8,007 7,899 .. .. .. .. .. .. .. 7,899 8,007 (18) 50 .. .. 4 36 (4) 8,039 8,039 .. .. .. .. .. .. .. 8,039 8,039 .. .. .. .. .. .. .. 8,039 8,039 .. .. .. .. .. .. .. 8,039 8,039 .. .. .. .. .. .. .. 8,039
B.2 & B.3 | 175
GAAP Tables Line-by-Line Consolidation

The financial statements presentation is changing
The Public Finance Act 1989 and Fiscal Responsibility Act 1994 require the government to produce actual and forecast financial statements in accordance with generally accepted accounting practice (GAAP). This ensures that the financial statements and forecasts of the Crown are prepared on a basis familiar to readers of private sector financial statements providing a transparent and independently established set of principles on which to measure a governments financial activity. GAAP will soon require the full line-by-line consolidation of SOEs and Crown entities (currently the accounts only consolidate the net surplus in the operating balance and net investment/net worth in the balance sheet). In addition, there are some adjustments that will impact on core Crown (defined below) results owing to changes to the treatment of GST on Crown spending and the treatment of the Government Superannuation Fund (GSF). The following table outlines the presentation and how it is changing. It defines the key terms that are used within the following summary financial statements.
Current presentation of consolidation The current presentation shows: Crown expenses and revenues with net SOE and Crown entity results Crown assets, liabilities, net Crown debt, gross Crown debt and net worth. The Crown balance sheet only includes a net investment in SOEs and Crown entities. Future presentation of consolidation The future presentation will show the three institutional forms of: core Crown (existing information on revenues and expenses less GST on Crown expenses plus inclusion of full GSF numbers) SOE revenues, expenses, assets, liabilities Crown entity revenues, expenses, assets, liabilities. The sum of these three segments (less internal transactions) is the total Crown. The core Crown is different from the current presentation owing to the removal of GST on Crown expenses and the inclusion of the full accounts of the GSF.
While the presentation is changing it is important to note that the net results for the Crown will be materially the same (ie, operating balance and net worth), although the composition and total of items such as revenues, expenses, assets and liabilities will change. A full explanation of the presentation change, what the impacts are and how to interpret the new information is outlined in a section contained at the end of the Fiscal Outlook chapter.
176 | B.2 & B.3
GAAP SERIES TABLES
Accounting and Forecast Policies

The accounting and forecast policies are outlined in the previous set of GAAP tables. The substantive difference between the existing accounting policies and those underpinning the preparation of the future presentation is the consolidation policy itself. This change is outlined on the previous page. Other than the consolidation policy, there are no substantive alterations to the existing accounting and forecast policies as a result of implementing full line-by-line consolidation of SOEs and Crown entities. There is, however, a need for additional policies because of the inclusion of new classes of property, plant and equipment (physical assets). Essentially the new specific accounting policies relate to the valuation approach to electricity distribution equipment, electricity generation equipment and aircraft. These policies will be finalised as part of the 30 June 2003 Crown financial statements (the first set of fully consolidated accounts).
Contents and Definitions

Because of the different presentation used in the following summary financial statements, there are some new terms used to classify components of the statement of financial position and statement of borrowings. The following outlines a summary to the content and definitions of each section. More detailed notes are published on Treasurys website.
Financial performance (operating statement): The statement of financial performance is accompanied by a breakdown of both total Crown and core Crown expenses. There are no new classifications from those contained in the existing set of fiscal forecasts. Financial position (balance sheet): The statement of financial performance is accompanied by some analysis of key components. In terms of new definitions: Borrowings are split between sovereign-guaranteed and non-sovereign-guaranteed. Essentially the debt of SOEs and Crown entities is not guaranteed explicitly by the Crown and so a distinction is made from the debt issued by the sovereign (eg, NZDMO and the Reserve Bank). Another term is gross sovereign-issued debt. This is debt issued by the sovereign and so is a measure that does not eliminate any cross-holdings of Government stock held by entities such as the NZS Fund, GSF, ACC or EQC. The Governments debt objective uses this measure.
The ACC outstanding claims liability is shown separately in the balance sheet.
Cash flow statement: The cash flow has been summarised.
There is no substantive change to the reconciliation of cash flows to the movement in

domestic bonds. While there are cross-holdings of Government stock held by other entities within the consolidated accounts, these are not eliminated for the purposes of this statement as it provides a reference point for the Governments domestic debt programme.
B.2 & B.3 | 177
Borrowing statement: The borrowings statement reflects the sovereign-guaranteed and nonsovereign-guaranteed split to borrowings (or debt). It includes ALL financial assets, including those of the GSF and the NZS Fund. The measure of net Crown debt cannot be directly derived from the information in the borrowings statement. This is contained in more specific notes that outline the core Crown, SOE and Crown entity information separately. Segment notes: These notes provide a summary of the operating statement, balance sheet and borrowings statement information by each of the three institutional segments that make up the Crown financial statements. These segments are the core Crown, SOEs and Crown entities adding to total Crown after elimination of internal transactions.
178 | B.2 & B.3
GAAP SERIES TABLES
Summary Table
The following summary tables outline the key fiscal variables, comparing from the current presentation to those contained in the following GAAP tables prepared using the future presentation. The first table is expressed as a percentage of GDP. The second table is expressed in nominal dollars.
Summary indicators (% of GDP) 1997 Actual 1998 Actual 1999 Actual 2000 Actual 2001 2002 Actual 2003 2004 2005 2006 Actual Estimated Forecast Forecast Forecast Forecast
Revenue Current presentation Future presentation of Core Crown Future presentation of Total Crown Expenses Current presentation Future presentation of Core Crown Future presentation of Total Crown Operating balance Current presentation Future presentation OBERAC (no changes) Gross debt Current presentation Future presentation of Core Crown Future presentation of Total Crown Gross sovereign-issued debt (no change) Net Crown debt Current presentation Future presentation Net worth (no change) Tax and Sovereign revenue Tax revenue Current presentation Future presentation of Core Crown Future presentation of Total Crown Total sovereign revenue (i.e. levies) Current presentation Future presentation of Core Crown Future presentation of Total Crown Nominal GDP ($ million)
35.5% 34.2% 41.5%
35.7% 34.3% 42.1%
35.7% 33.8% 42.1%
34.1% 32.3% 39.7%
34.6% 33.3% 40.9%
34.2% 32.9% 42.5%
34.4% 33.1% 43.3%
34.4% 33.0% 43.3%
34.5% 33.1% 43.4%
34.4% 33.1% 43.2%
33.6% 32.4% 39.5%
34.3% 32.9% 40.0%
35.2% 33.8% 40.3%
33.8% 32.3% 38.3%
33.5% 32.2% 39.7%
32.5% 31.2% 40.3%
33.0% 31.7% 41.4%
32.7% 31.4% 41.0%
32.4% 31.0% 40.5%
32.3% 30.9% 40.3%
1.9% 1.9% 1.9%
2.5% 2.1% 2.2%
1.7% 1.7% 0.2%
1.4% 1.4% 0.8%
1.2% 1.2% 1.8%
2.2% 2.2% 1.9%
1.8% 1.8% 1.8%
2.3% 2.3% 2.3%
2.9% 2.9% 2.9%
3.0% 3.0% 3.0%
36.7% 35.0% 37.8% 36.7%
38.0% 36.1% 38.2% 38.0%
36.1% 33.8% 35.2% 36.1%
33.7% 31.6% 32.4% 33.7%
32.2% 29.6% 30.4% 32.2%
30.2% 28.9% 31.3% 30.2%
28.6% 28.4% 30.5% 28.6%
29.2% 29.0% 30.2% 29.2%
28.8% 28.6% 29.4% 28.8%
28.4% 28.2% 28.3% 28.4%
25.9% 24.1% 7.6%
24.1% 22.2% 9.9%
21.3% 19.1% 5.9%
20.0% 17.9% 8.0%
17.5% 14.9% 10.0%
16.8% 15.5% 11.8%
16.8% 16.5% 13.2%
16.8% 16.6% 14.9%
16.2% 16.0% 17.2%
15.5% 15.3% 19.4%
32.6% 31.0% 30.8% 32.9% 31.3% 33.0% 97,933
33.1% 31.5% 31.2% 33.3% 31.8% 33.5%
31.6% 30.0% 29.7% 31.9% 30.3% 31.8%
31.8% 30.1% 29.9% 32.1% 30.5% 31.5%
32.2% 30.7% 30.4% 32.5% 31.0% 32.4%
31.9% 30.3% 30.1% 32.3% 30.7% 32.2%
32.1% 30.5% 30.3% 32.5% 30.9% 32.3%
32.1% 30.4% 30.1% 32.4% 30.7% 32.1%
32.1% 30.4% 30.1% 32.4% 30.8% 32.0%
31.9% 30.2% 29.9% 32.2% 30.5% 31.8%
99,790 101,761 107,064 114,145
120,309 124,964 131,293 137,201 143,026
Notes: Net Crown debt is a measure of core Crown borrowings less financial assets. It is defined to exclude the assets of the NZS Fund and the GSF as these can only be used for very specific purposes. Explanation of what causes the changes between the various measures is discussed in the detailed consolidation section contained at the end of the Fiscal Outlook chapter.
B.2 & B.3 | 179
Summary Table (continued)
Summary indicators ($ million)
1997 Actual
1998 Actual
1999 Actual
2000 Actual
2001 2002 2003 2004 2005 2006 Actual Estimated Forecast Forecast Forecast Forecast Actual
Revenue Current presentation Future presentation of Core Crown Future presentation of Total Crown Expenses Current presentation Future presentation of Core Crown Future presentation of Total Crown Operating balance Current presentation Future presentation OBERAC (no changes) Gross debt Current presentation Future presentation of Core Crown Future presentation of Total Crown
34,778 33,533 40,595
35,581 34,222 41,997
36,357 34,367 42,807
36,526 34,536 42,513
39,492 38,005 46,686
41,172 39,526 51,178
42,952 41,319 54,052
45,142 43,330 56,873
47,329 45,451 59,544
49,259 47,280 61,825
32,953 31,708 38,687
34,211 32,852 39,870
35,825 34,367 41,044
36,171 34,536 41,010
38,186 36,699 45,328
39,148 37,502 48,542
41,187 39,554 51,764
42,985 41,173 53,795
44,477 42,599 55,607
46,226 44,247 57,583
1,908 1,908 1,904
2,534 2,127 2,191
1,777 1,763 246
1,449 1,503 884
1,409 1,358 2,107
2,636 2,636 2,310
2,288 2,288 2,288
3,078 3,078 3,078
3,937 3,937 3,937
4,242 4,242 4,242
35,972 34,267 36,999
37,892 36,002 38,125 37,892
36,712 34,425 35,777 36,712
36,041 33,812 34,675 36,041
36,761 33,811 34,652 36,761
36,299 34,799 37,623 36,299
35,781 35,441 38,159 35,781
38,391 38,041 39,600 38,391
39,543 39,193 40,277 39,543
40,656 40,306 40,492 40,656
Gross sovereign-issued debt (no change) 35,972 Net Crown debt Current presentation Future presentation Net worth (no change) Tax and Sovereign revenue Tax revenue Current presentation Future presentation of Core Crown Future presentation of Total Crown Total sovereign revenue (i.e. levies) Current presentation Future presentation of Core Crown Future presentation of Total Crown
25,324 23,619 7,470
24,069 22,179 9,921
21,701 19,414 6,022
21,396 19,167 8,583
19,971 17,021 11,463
20,162 18,662 14,238
20,935 20,595 16,526
22,087 21,737 19,604
22,244 21,894 23,541
22,230 21,880 27,783
31,916 30,387 30,160 32,179 30,650 32,304
32,982 31,429 31,161 33,240 31,687 33,477
32,156 30,525 30,227 32,456 30,825 32,381
34,035 32,248 32,000 34,411 32,624 33,686
36,738 34,995 34,744 37,123 35,380 37,013
38,377 36,430 36,205 38,870 36,923 38,684
40,141 38,104 37,902 40,613 38,576 40,356
42,084 39,870 39,530 42,571 40,357 42,084
43,981 41,701 41,335 44,474 42,194 43,965
45,570 43,188 42,771 46,076 43,694 45,484
180 | B.2 & B.3
GAAP SERIES TABLES
Statement of Financial Performance total Crown

2001 Actual 2002 Estimated Actual 2003 Forecast 2004 Forecast 2005 Forecast 2006 Forecast
($ million) Revenue Taxation revenue Levies, fees, fines and penalties Total Revenue Levied through the Crown's Sovereign Power Sales of goods and services Investment income Other revenue Total Crown Revenue Expenses Subsidies and transfer payments Personnel expenses Operating expenses Forecast for future new spending Finance costs Net foreign-exchange losses/(gains) Revaluation movement in GSF liability Revaluation movement in ACC liability Total Crown expenses Operating Balance
34,744 2,269 37,013 7,234 1,217 1,222 46,686
36,205 2,479 38,684 9,667 1,183 1,644 51,178
37,902 2,454 40,356 10,690 1,360 1,646 54,052
39,530 2,554 42,084 11,419 1,781 1,589 56,873
41,335 2,630 43,965 11,916 2,118 1,545 59,544
42,771 2,713 45,484 12,355 2,469 1,517 61,825
14,484 10,679 16,885 .. 2,646 50 164 420 45,328 1,358
14,986 11,992 19,515 .. 2,289 86 (368) 42 48,542 2,636
15,452 12,638 20,938 204 2,532 .. .. .. 51,764 2,288
15,890 12,855 21,837 622 2,591 .. .. .. 53,795 3,078
16,369 13,012 22,551 1,049 2,626 .. .. .. 55,607 3,937
16,927 13,300 22,844 1,849 2,663 .. .. .. 57,583 4,242
The Notes to the financial statements are contained on Treasury's website.
B.2 & B.3 | 181
Statement of Financial Performance (continued) analysis of expenses

Following is an analysis of total Crown expenses and core Crown expenses by functional classification. This information reconciles to segmental information within the notes to the forecasts.
($ million)
Note
Total Crown expenses by functional classification

Social security and welfare (includes GSF) Health Education Other functional classification Finance costs Net foreign-exchange losses/(gains) Forecast for future new spending Total Expenses 16,323 6,802 7,719 11,862 2,572 50 .. 45,328 15,984 7,485 8,185 14,513 2,289 86 .. 48,542 16,706 7,833 8,556 15,933 2,532 .. 204 51,764 17,286 8,229 8,650 16,417 2,591 .. 622 53,795 17,781 8,596 8,801 16,754 2,626 .. 1,049 55,607 18,386 8,713 8,914 17,058 2,663 .. 1,849 57,583
Core Crown expenses by functional classification

Social security and welfare (includes GSF) Health Education Core government services Law and order Defence Transport and communications Economic and industrial services Primary services Heritage, culture and recreation Housing and community development Other Finance costs Net foreign-exchange (gains)/losses Forecast for future new spending Total Expenses 14,319 6,660 6,136 1,798 1,541 1,242 905 1,037 279 400 50 75 2,304 (47) .. 36,699 14,210 7,019 6,499 1,547 1,765 1,152 1,027 1,045 315 479 95 109 2,176 64 .. 37,502 14,863 7,595 6,817 1,596 1,728 1,154 1,096 1,128 330 508 103 114 2,318 .. 204 39,554 15,343 8,037 6,982 1,575 1,731 1,149 1,155 1,118 318 530 99 110 2,404 622 41,173 15,741 8,461 7,052 1,591 1,728 1,146 1,175 1,107 314 554 91 110 2,480 .. 1,049 42,599 16,248 8,588 7,148 1,622 1,721 1,146 1,182 1,115 312 564 91 110 2,551 .. 1,849 44,247
182 | B.2 & B.3
GAAP SERIES TABLES
Statement of Financial Position total Crown

as at 30 June
($ million) Assets Cash and bank balances Marketable securities, deposits & equity investments Advances Receivables Inventories Other investments Property, plant and equipment Commercial forests Intangible assets Forecast for future new capital spending Total Assets Liabilities Payables and provisions Borrowings - sovereign guaranteed Borrowings - non-sovereign guaranteed Provision for ACC outstanding claims liability Provision for GSF pension liability Currency issued Total Liabilities Total Assets less Total Liabilities Crown Balance Taxpayer funds Revaluation reserve Crown Balance
Note
7 7 8 9 10 11 12 13
1,187 16,616 4,326 7,629 671 281 45,875 380 168 .. 77,133
1,136 18,134 5,086 8,723 844 306 48,494 380 752 .. 83,855
1,088 19,156 5,778 8,855 821 397 49,544 380 679 220 86,918
1,237 21,537 6,532 9,000 878 383 50,326 381 604 1,020 91,898
1,434 24,658 7,319 9,247 897 369 50,614 381 532 1,520 96,971
1,653 28,261 8,127 9,354 906 355 50,372 381 461 1,880 101,750
14
15 16
9,359 29,090 5,562 7,141 11,979 2,539 65,670 11,463
9,855 30,476 7,147 7,500 11,702 2,937 69,617 14,238
9,831 31,348 6,811 7,806 11,659 2,937 70,392 16,526
9,898 33,579 6,021 8,264 11,595 2,937 72,294 19,604
9,980 34,298 5,979 8,735 11,501 2,937 73,430 23,541
9,898 34,944 5,548 9,228 11,412 2,937 73,967 27,783
17 17
3,405 8,058 11,463
6,148 8,090 14,238
8,436 8,090 16,526
11,514 8,090 19,604
15,451 8,090 23,541
19,693 8,090 27,783
B.2 & B.3 | 183
Statement of Financial Position (continued) analysis of NZS Fund and Debt

as at 30 June
($ million)
Note
New Zealand Superannuation Fund

Within MSDs and equity investments is the NZS Fund Opening balance Gross contribution Retained income (after tax) NZS Fund balance .. .. .. .. .. 586 14 600 600 1,200 90 1,890 1,890 1,800 208 3,898 3,898 2,011 368 6,277 6,277 2,117 550 8,944
Gross and Net Debt Information

Total Crown Debt Total Crown gross debt Total sovereign-issued debt Definitions of debt: Total Crown gross debt is the total borrowings (both sovereign-guaranteed and non-sovereign guaranteed) of the total Crown. This equates to the amount in the total Crown balance sheet and represents the complete picture of whole-of-Crown debt obligations to external parties. The balance sheet splits total Crown debt into sovereign-guaranteed and non-sovereign-guaranteed debt. This split reflects the fact that debt held by SOEs and Crown entities is not explicitly guaranteed by the Crown. Any such debt that may be guaranteed is included in the sovereign-guaranteed total. No debt of SOEs and Crown entities is currently guaranteed by the Crown. Total sovereign-issued debt is debt issued by the sovereign (i.e., core Crown) and includes Government stock held by the NZS Fund, GSF, ACC or EQC for example. In other words, the total sovereign-issued debt does not eliminate any internal cross-holdings. The Government's debt objective uses this measure of debt. Core Crown Gross Crown debt Financial assets Borrowings less Financial Assets NZS Fund assets GSF assets GSF cross-holdings of Government stock Net Crown Debt 34,652 36,761 37,623 36,299 38,159 35,781 39,600 38,391 40,227 39,543 40,492 40,656
33,811 (17,319) 16,492 .. 3,479 (2,950) 17,021
34,799 (18,737) 16,062 600 3,500 (1,500) 18,662
35,441 (19,896) 15,545 1,890 3,500 (340) 20,595
38,041 (23,362) 14,679 3,898 3,510 (350) 21,737
39,193 (26,736) 12,457 6,277 3,510 (350) 21,894
40,306 (30,530) 9,776 8,944 3,510 (350) 21,880
184 | B.2 & B.3
GAAP SERIES TABLES
Statement of Movement in Equity total Crown

2002 Estimated Actual 11,463 2,636 36 2,672 .. 103 14,238
($ million) Opening Crown Balance Operating balance for the year Net revaluations Total Recognised Revenues and Expenses State highway recognition policy change Conservation visitor asset recognition Closing Crown Balance
Note
2001 Actual 8,583 1,358 (128) 1,230 1,650 .. 11,463
2003 Forecast 14,238 2,288 .. 2,288 .. .. 16,526
2004 Forecast 16,526 3,078 .. 3,078 .. .. 19,604
2005 Forecast 19,604 3,937 .. 3,937 .. .. 23,541
2006 Forecast 23,541 4,242 .. 4,242 .. .. 27,783
17
B.2 & B.3 | 185
Statement of Cash Flow total Crown

Note ($ million) Cash Flows from Operations Cash was Provided from Total tax receipts (refer Note 1) Total other sovereign receipts (refer Note 1) Interest Dividends Sales of goods and services Other operating receipts Total Cash Provided from Operations Cash was Disbursed to Subsidies and transfer payments Personnel and operating payments Finance costs Forecast for future new spending Total Cash Disbursed to Operations Net Cash Flows from Operations Cash Flows from Investing Activities Cash was Provided from Sale of physical assets Total Cash Provided Cash was Disbursed to Purchase of physical assets Net increase in advances Other net purchase/(sale) of marketable securities & deposits and other equity investments Capitalised interest paid Forecast for future new capital spending Total Cash Disbursed Net Cash Flows from Investing Activities Net Cash Flows from Operating and Investing Activities Cash Flows from Financing Activities Cash was Provided from Issue of circulating currency Net issue of Government stock Total Cash Provided Cash was Disbursed to Net repayment/(issue) of foreigncurrency borrowing Net repayment/(issue) of other New Zealand-dollar borrowing Total Cash Disbursed Net Cash Flows from Financing Activities Net Movement in Cash Opening Cash Balance Foreign-exchange gains on opening cash balances Closing Cash Balance (390) (1,761) (102) (1,292) (697) (210) 2001 Actual 2002 Estimated Actual 2003 Forecast 2004 Forecast 2005 Forecast 2006 Forecast
1 1
34,272 2,503 1,129 37 7,772 923 46,636
36,404 2,107 1,479 38 9,085 965 50,078
37,884 2,449 1,436 41 10,214 1,630 53,654
39,645 2,521 1,545 46 10,510 1,602 55,869
41,466 2,608 1,632 50 11,088 1,597 58,441
42,989 2,695 1,802 55 11,530 1,455 60,526
14,416 25,527 2,685 .. 42,628 4,008
14,999 28,339 2,229 .. 45,567 4,511
15,472 29,968 2,517 204 48,161 5,493
15,985 30,887 2,509 622 50,003 5,866
16,439 31,860 2,583 1,049 51,931 6,510
17,020 32,280 2,661 1,849 53,810 6,716
191 191
247 247
127 127
94 94
71 71
64 64
2,702 603 1,263 21 .. 4,589 (4,398)
2,999 839 2,661 20 .. 6,519 (6,272)
3,420 768 1,310 4 220 5,722 (5,595)
3,357 759 2,332 4 800 7,252 (7,158)
2,914 794 3,066 4 500 7,278 (7,207)
2,532 849 3,245 4 360 6,990 (6,926)
19
303 1,067 1,370
398 1,627 2,025
.. 1,025 1,025
.. 2,160 2,160
.. 760 760
.. 546 546
1,030 350 1,380 (10) (400) 1,587 .. 1,187
(227) 533 306 1,719 (42) 1,187 (9) 1,136
358 613 971 54 (48) 1,136 .. 1,088
182 537 719 1,441 149 1,088 .. 1,237
7 (141) (134) 894 197 1,237 .. 1,434
73 44 117 429 219 1,434 .. 1,653
18
186 | B.2 & B.3
GAAP SERIES TABLES
Statement of Borrowings total Crown

as at 30 June
($ million) Sovereign Guaranteed Debt New Zealand-Dollar Debt Government stock Treasury bills Loans and foreign-exchange contracts Retail stock and other Total New Zealand-Dollar Debt Foreign-Currency Debt United States dollars Japanese yen European and other currencies Total Foreign-Currency Debt Total Sovereign Guaranteed Debt Non-Sovereign Guaranteed Debt New Zealand United States dollars Japanese yen European and other currencies Total Non-Sovereign Guaranteed Debt Total Borrowings (Gross Debt) Less Financial Assets (including restricted assets)
Note
15,979 5,239 (272) 498 21,444
18,796 4,892 (374) 512 23,826
19,821 5,330 (823) 510 24,838
21,981 5,290 (711) 509 27,069
22,741 5,266 (730) 509 27,786
23,287 5,243 (606) 509 28,433
4,780 1,432 1,434 7,646 29,090
4,249 448 1,953 6,650 30,476
4,278 279 1,953 6,510 31,348
4,276 279 1,955 6,510 33,579
4,277 279 1,956 6,512 34,298
4,277 279 1,955 6,511 34,944
4,621 474 147 320 5,562 34,652
4,936 1,765 140 306 7,147 37,623
4,736 1,623 142 310 6,811 38,159
4,128 1,409 152 332 6,021 39,600
4,184 1,293 158 344 5,979 40,277
3,858 1,188 158 344 5,548 40,492
Marketable Securities, Deposits and Equity Investments New Zealand dollars United States dollars Japanese yen European and other currencies Reserve Position at IMF Equity investments New Zealand dollars Equity investments foreign-currency 6 Total Advances and Cash Student loans Other advances Cash Total Total Financial Assets Borrowings less Financial Assets
7,058 5,282 1,549 506 946 687 588 16,616
9,225 4,504 489 878 1,032 746 1,260 18,134
9,514 4,600 269 759 1,147 845 2,022 19,156
11,525 4,633 270 631 1,276 963 2,239 21,537
14,262 4,671 270 491 1,414 1,083 2,467 24,658
17,462 4,713 270 343 1,561 1,206 2,706 28,261
4,143 183 1,187 5,513 22,129 12,523
4,799 287 1,136 6,222 24,356 13,267
5,531 247 1,088 6,866 26,022 12,137
6,295 237 1,237 7,769 29,306 10,294
7,074 245 1,434 8,753 33,411 6,866
7,863 264 1,653 9,780 38,041 2,451
Net New Zealand-dollar debt Net foreign-currency debt Borrowings less Financial Assets
12,807 (284) 12,523
12,569 698 13,267
12,349 (212) 12,137
10,940 (646) 10,294
7,872 (1,006) 6,866
3,843 (1,392) 2,451
The financial assets includes the assets of the NZS Fund and the GSF. The total of borrowings less financial assets is not a measure of net Crown debt. Net Crown debt is shown in the following segmental notes. It is defined as core Crown borrowings less financial assets (not including the assets of the NZS Fund and the GSF).
B.2 & B.3 | 187
Segment Notes to the Financial Statements total Crown

Core Crown ($ million) Revenue Taxation revenue Other sovereign levied income Sales of goods and services Investment income Other revenues Total revenue Expenses by input type Subsidies and transfer payments Personnel expenses Operating expenses Finance costs FX losses/(gains) GSF and ACC liability revaluation movements Total expenses Expenses by functional classification Social security and welfare Health Education Other functional classifications Forecast for future new spending Finance costs and FX losses/(gains) Total expenses Operating balance 2002 $m 36,430 493 687 1,303 613 39,526 13,656 3,846 18,128 2,176 64 (368) 37,502 14,210 7,019 6,499 7,534 2,240 37,502 2,024 Crown entities 2002 $m 2,000 3,270 571 12,252 18,093 1,330 7,019 8,877 205 42 17,473 2,223 5,409 6,052 3,584 205 17,473 620 State-owned enterprises 2002 $m 6,583 31 377 6,991 1,132 5,222 220 22 6,596 6,355 241 6,596 395 Inter-segment eliminations 2002 $m (225) (14) (873) (722) (11,598) (13,432) (5) (12,712) (312) (13,029) (449) (4,943) (4,366) (2,960) (311) (13,029) (403) Total Crown 2002 $m 36,205 2,479 9,667 1,183 1,644 51,178 14,986 11,992 19,515 2,289 86 (326) 48,542 15,984 7,485 8,185 14,513 2,375 48,542 2,636
Forecast Statement of Financial Position (institutional form)

as at 30 June 2002 Core Crown ($ million) Assets Financial assets Physical assets Investment in SOEs and CEs Other assets Total assets Liabilities Borrowings Other liabilities Total liabilities Net worth Taxpayer funds Revaluation reserves Net worth Analysis of financial assets and borrowings Advances and cash MSDs and equity investments Total financial assets Borrowings - Sovereign guaranteed Borrowings - Non-sovereign guaranteed Total borrowings Borrowings less financial assets Net Crown debt Gross sovereign-issued debt 2002 $m 18,737 27,335 7,662 7,420 61,154 34,799 20,083 54,882 6,272 1,937 4,335 6,272 Crown entities 2002 $m 9,831 11,352 1,846 23,029 3,450 10,204 13,654 9,375 6,369 3,006 9,375 State-owned enterprises 2002 $m 1,001 9,807 2,448 13,256 4,587 2,416 7,003 6,253 5,509 744 6,253 Inter-segment eliminations 2002 $m (5,213) (7,662) (709) (13,584) (5,213) (709) (5,922) (7,662) (7,667) 5 (7,662) Total Crown 2002 $m 24,356 48,494 11,005 83,855 37,623 31,994 69,617 14,238 6,148 8,090 14,238
6,087 12,650 18,737 34,799 34,799 16,062 18,662 36,299
878 8,953 9,831 3,450 3,450 (6,381)
147 854 1,001 4,587 4,587 3,586
(890) (4,323) (5,213) (4,323) (890) (5,213) -
6,222 18,134 24,356 30,476 7,147 37,623 13,267
Net Crown debt and gross sovereign-issued debt differ from the analysis above due to elimination of cross-holdings of Govt stock and adding back the NZS Fund and GSF assets.
188 | B.2 & B.3
GAAP SERIES TABLES
Segment Notes to the Financial Statements (continued)

Forecast Statement of Financial Performance (institutional form)
for the year ended 30 June 2003 Core Crown ($ million) Revenue Taxation revenue Other sovereign levied income Sales of goods and services Investment income Other revenues Total revenue Expenses by input type Subsidies and transfer payments Personnel expenses Operating expenses Finance costs FX losses/(gains) GSF and ACC liability revaluation movements Total expenses Expenses by functional classification Social security and welfare Health Education Other functional classifications Forecast for future new spending Finance costs and FX losses/(gains) Total expenses Operating balance 2003 $m 38,104 472 704 1,527 512 41,319 13,972 3,932 19,332 2,318 39,554 14,863 7,595 6,817 7,757 204 2,318 39,554 1,765 Crown entities 2003 $m 1,998 3,082 636 12,898 18,614 1,480 7,191 9,224 221 18,116 2,318 5,457 6,316 3,804 221 18,116 498 State-owned enterprises 2003 $m 7,671 31 543 8,245 1,518 5,917 324 7,759 7,435 324 7,759 486 Inter-segment eliminations 2003 $m (202) (16) (767) (834) (12,307) (14,126) (3) (13,331) (331) (13,665) (475) (5,219) (4,577) (3,063) (331) (13,665) (461) Total Crown 2003 $m 37,902 2,454 10,690 1,360 1,646 54,052 15,452 12,638 21,142 2,532 51,764 16,706 7,833 8,556 15,933 204 2,532 51,764 2,288

as at 30 June 2003 Core Crown ($ million) Assets Financial assets Physical assets Investment in SOEs and CEs Other assets Total assets Liabilities Borrowings Other liabilities Total liabilities Net worth Taxpayer Funds Revaluation reserves Net worth Analysis of financial assets and borrowings Advances and cash MSDs and equity investments Total financial assets Borrowings - Sovereign guaranteed Borrowings - Non-sovereign guaranteed Total borrowings Borrowings less financial assets Net Crown debt Gross sovereign-issued borrowings 2003 $m 19,896 27,695 8,125 7,783 63,499 35,441 20,021 55,462 8,037 3,702 4,335 8,037 Crown entities 2003 $m 10,685 11,917 1,902 24,504 3,548 10,669 14,217 10,287 7,281 3,006 10,287 State-owned enterprises 2003 $m 848 9,932 2,377 13,157 4,577 2,253 6,830 6,327 5,578 749 6,327 Inter-segment eliminations 2003 $m (5,407) (8,125) (710) (14,242) (5,407) (710) (6,117) (8,125) (8,125) (8,125) Total Crown 2003 $m 26,022 49,544 11,352 86,918 38,159 32,233 70,392 16,526 8,436 8,090 16,526
7,250 12,646 19,896 35,441 35,441 15,545 20,595 35,781
856 9,829 10,685 3,548 3,548 (7,137)
74 774 848 4,577 4,577 3,729
(1,314) (4,093) (5,407) (4,093) (1,314) (5,407) -
6,866 19,156 26,022 31,348 6,811 38,159 12,137
B.2 & B.3 | 189

Core Crown ($ million) Revenue Taxation revenue Other sovereign levied income Sales of goods and services Investment income Other revenues Total revenue Expenses by input type Subsidies and transfer payments Personnel expenses Operating expenses Finance costs FX losses/(gains) GSF and ACC liability revaluation movements Total expenses Expenses by functional classification Social security and welfare Health Education Other functional classifications Forecast for future new spending Finance costs and FX losses/(gains) Total expenses Operating balance 2004 $m 39,870 487 662 1,805 506 43,330 14,476 3,937 20,356 2,404 41,173 15,343 8,037 6,982 7,785 622 2,404 41,173 2,157 Crown entities 2004 $m 2,085 3,132 733 13,282 19,232 1,414 7,331 9,544 245 18,534 2,411 5,603 6,425 3,850 245 18,534 698 State-owned enterprises 2004 $m 8,375 31 466 8,872 1,591 6,381 314 8,286 7,972 314 8,286 586 Inter-segment eliminations 2004 $m (340) (18) (750) (788) (12,665) (14,561) (4) (13,822) (372) (14,198) (468) (5,411) (4,757) (3,190) (372) (14,198) (363) Total Crown 2004 $m 39,530 2,554 11,419 1,781 1,589 56,873 15,890 12,855 22,459 2,591 53,795 17,286 8,229 8,650 16,417 622 2,591 53,795 3,078

8,930 14,432 23,362 38,041 38,041 14,679 21,737 38,391
920 10,829 11,749 3,576 3,576 (8,173)
67 738 805 4,593 4,593 3,788
(2,148) (4,462) (6,610) (4,462) (2,148) (6,610) -
7,769 21,537 29,306 33,579 6,021 39,600 10,294
190 | B.2 & B.3
GAAP SERIES TABLES

Core Crown ($ million) Revenue Taxation revenue Other sovereign levied income Sales of goods and services Investment income Other revenues Total revenue Expenses by input type Subsidies and transfer payments Personnel expenses Operating expenses Finance costs FX losses/(gains) GSF and ACC liability revaluation movements Total expenses Expenses by functional classification Social security and welfare Health Education Other functional classifications Forecast for future new spending Finance costs and FX losses/(gains) Total expenses Operating balance 2005 $m 41,701 493 662 2,094 501 45,451 14,880 3,934 21,305 2,480 42,599 15,741 8,461 7,052 7,816 1,049 2,480 42,599 2,852 Crown entities 2005 $m 2,155 3,194 807 13,537 19,693 1,489 7,420 9,726 264 18,899 2,516 5,730 6,464 3,925 264 18,899 794 State-owned enterprises 2005 $m 8,825 31 422 9,278 1,662 6,680 322 8,664 8,342 322 8,664 614 Inter-segment eliminations 2005 $m (366) (18) (765) (814) (12,915) (14,878) (4) (14,111) (440) (14,555) (476) (5,595) (4,715) (3,329) (440) (14,555) (323) Total Crown 2005 $m 41,335 2,630 11,916 2,118 1,545 59,544 16,369 13,012 23,600 2,626 55,607 17,781 8,596 8,801 16,754 1,049 2,626 55,607 3,937

9,987 16,749 26,736 39,193 39,193 12,457 21,894 39,543
979 11,918 12,897 3,554 3,554 (9,343)
87 886 973 4,725 4,725 3,752
(2,300) (4,895) (7,195) (4,895) (2,300) (7,195) -
8,753 24,658 33,411 34,298 5,979 40,277 6,866
B.2 & B.3 | 191

Forecast Statement of Financial Performance (institutional form)
for the year ended 30 June 2006 Core Crown ($ million) Revenue Taxation revenue Other sovereign levied income Sales of goods and services Investment income Other revenues Total revenue Expenses by input type Subsidies and transfer payments Personnel expenses Operating expenses Finance costs FX losses/(gains) GSF and ACC liability revaluation movements Total expenses Expenses by functional classification Social security and welfare Health Education Other functional classifications Forecast for future new spending Finance costs and FX losses/(gains) Total expenses Operating balance 2006 $m 43,188 506 665 2,422 499 47,280 15,363 4,005 22,328 2,551 44,247 16,248 8,588 7,148 7,863 1,849 2,551 44,247 3,033 Crown entities 2006 $m 2,224 3,459 885 13,664 20,232 1,564 7,602 9,940 266 19,372 2,620 5,931 6,528 4,027 266 19,372 860 State-owned enterprises 2006 $m 9,204 31 378 9,613 1,697 6,892 324 8,913 8,589 324 8,913 700 Inter-segment eliminations 2006 $m (417) (17) (973) (869) (13,024) (15,300) (4) (14,467) (478) (14,949) (482) (5,806) (4,762) (3,421) (478) (14,949) (351) Total Crown 2006 $m 42,771 2,713 12,355 2,469 1,517 61,825 16,927 13,300 24,693 2,663 57,583 18,386 8,713 8,914 17,058 1,849 2,663 57,583 4,242

as at 30 June 2006 Core Crown ($ million) Assets Financial assets Physical assets Investment in SOEs and CEs Other assets Total assets Liabilities Borrowings Other liabilities Total liabilities Net worth Taxpayer Funds Revaluation reserves Net worth Analysis of financial assets and borrowings Advances and cash MSDs and equity investments Total financial assets Borrowings - Sovereign guaranteed Borrowings - Non-sovereign guaranteed Total borrowings Borrowings less financial assets Net Crown debt Gross sovereign-issued borrowings 2006 $m 30,530 27,699 8,720 9,207 76,156 40,306 19,771 60,077 16,079 11,744 4,335 16,079 Crown entities 2006 $m 14,133 12,421 2,193 28,747 3,593 12,021 15,614 13,133 10,127 3,006 13,133 State-owned enterprises 2006 $m 1,276 10,252 2,776 14,304 4,491 2,522 7,013 7,291 6,542 749 7,291 Inter-segment eliminations 2006 $m (7,898) (8,720) (839) (17,457) (7,898) (839) (8,737) (8,720) (8,720) (8,720) Total Crown 2006 $m 38,041 50,372 13,337 101,750 40,492 33,475 73,967 27,783 19,693 8,090 27,783
11,155 19,375 30,530 40,306 40,306 9,776 21,880 40,656
1,069 13,064 14,133 3,593 3,593 (10,540)
92 1,184 1,276 4,491 4,491 3,215
(2,536) (5,362) (7,898) (5,362) (2,536) (7,898) -
9,780 28,261 38,041 34,944 5,548 40,492 2,451
192 | B.2 & B.3

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Generally Accepted Accounting Practice (GAAP) Series Tables

Forecast Financial Statements

B.2 & B.3 | 141

2002 BUDGET ECONOMIC AND FISCAL UPDATE

Reporting Entity as at 10 May 2002

142 | B.2 & B.3

GAAP SERIES TABLES

B.2 & B.3 | 143

2002 BUDGET ECONOMIC AND FISCAL UPDATE

Forecast Statement of Financial Performance

23,863 12,875 36,738 385 37,123

24,505 13,180 37,685 418 38,103

24,478 13,899 38,377 493 38,870

25,697 14,444 40,141 472 40,613

27,139 14,945 42,084 487 42,571

28,478 15,503 43,981 493 44,474

29,479 16,091 45,570 506 46,076

1,369 659 381 (40) 2,369 39,492

934 654 305 .. 1,893 39,996

1,219 685 398 .. 2,302 41,172

1,337 705 297 .. 2,339 42,952

1,615 665 291 .. 2,571 45,142

1,904 665 286 .. 2,855 47,329

2,232 667 284 .. 3,183 49,259

The accompanying Notes are an integral part of these Statements.

144 | B.2 & B.3

GAAP SERIES TABLES

Forecast Statement of Financial Position

5,831 2,539 36,761 8,487 53,618 11,463

4,758 2,570 35,831 8,734 51,893 11,957

5,428 2,937 36,299 8,119 52,783 14,238

5,409 2,937 35,781 8,053 52,180 16,526

5,397 2,937 38,391 7,976 54,701 19,604

5,491 2,937 39,543 7,879 55,850 23,541

5,410 2,937 40,656 7,798 56,801 27,783

3,456 8,007 11,463

4,058 7,899 11,957

6,199 8,039 14,238

8,487 8,039 16,526

11,565 8,039 19,604

15,502 8,039 23,541

19,744 8,039 27,783

2001 Actual .. 12,060 12,060

The accompanying Notes are an integral part of these Statements.

B.2 & B.3 | 145

2002 BUDGET ECONOMIC AND FISCAL UPDATE

Forecast Statement of Movements in Equity

2001 Actual 8,583 1,409 (179) 1,230 1,650 11,463

The accompanying Notes are an integral part of these Statements.

146 | B.2 & B.3

GAAP SERIES TABLES

Forecast Statement of Cash Flows

($ million) Cash Flows from Operations Cash was Provided from

13,748 4,221 (1,175) 338 17,132

14,358 4,319 (1,094) 324 17,907

5,377 (785) 738 98 5,428 1,043 2 23,605

5,518 (701) 679 36 5,532 1,046 2 24,487

5,353 (707) 634 149 5,429 1,013 2 24,565

5,401 (650) 638 122 5,511 1,075 2 25,636

5,898 (646) 692 56 6,000 1,084 2 27,108

6,175 (640) 716 56 6,307 1,084 2 28,433

6,272 (628) 737 56 6,437 1,085 2 29,477

14,604 (5,657) 8,947 3,698 12,645 36,250 324