NZ National Party borrowed 65 BILLION over 6 years. WHY ???

SUMMARY:  These are some of the latest figures out on the NZ Treasury website, to 31 May 2014

The Financial Statements of the Government provide a record of the Government’s financial performance for the eleven months ended 31 May 2014 and its financial position as at that date.

At a Glance.
Core Crown Gross debt  82,150,000,000   as a percentage of GDP 36.3%

Core Crown
Core Crown tax revenue 56,497,000,000
Core Crown revenue 61,840,000,000
Core Crown expenses 64,173,000,000
Core Crown residual cash (3,833,000,000)


1. Using GDP for the year ended 31 March 2014 of $226,551 million (Source: Statistics New Zealand).
2. Using forecast GDP for the year ended 30 June 2014 of $230,717 million (Source:  Treasury).
3. Gross sovereign‐issued debt excluding settlement cash and Reserve Bank bills.
4. Net core Crown debt excluding student loans and other advances.  Net debt may fluctuate during the year largely reflecting the timing of tax receipts.

Core Crown includes Ministers, Departments, Offices of Parliament, the NZS Fund and the Reserve Bank of New Zealand but excludes State‐owned enterprises and Crown entities.

Source:   http://www.treasury.govt.nz/government/financialstatements/monthend/pdfs/fsgnz-11mths-may14.pdf  p.2


Note (on NZIER):  If the government is persistently running deficits, that is spending more than it earns, it will have to borrow money to meet the shortfall. Accumulating more and more debt is not sustainable, as the government can become insolvent!

Source:  http://nzier.org.nz/about/economics-explained/fiscal-policy/

 Source:  NZIER

2nd Source:  NZ Treasury  

One of my questions is...  

If there's enough revenue being collected, ie:

Core Crown tax revenue 56,497,000,000 
Core Crown revenue 61,840,000,000 
Core Crown expenses 64,173,000,000 
Core Crown residual cash (3,833,000,000) 

WHY are we loaning money at all... ?? - especially THIS amount of money over 6 years...  (65 billion)

That's just plain old UNFATHOMABLE !!!

Here are some other links that will help as we try to figure out what the heck is going on...

Debt

Table 9 – Net debt and Gross debt.  Year ended 30 June 

Actual   2009   * Net debt ($m) 17,119  (% GDP) 9.2%  * Gross debt ($m) 43,356  (% GDP) 23.4%

Actual 2010    * Net debt ($m)  26,738  (% GDP) 13.9% * Gross debt ($m) 53,591 (% GDP) 27.9%

Actual 2011    * Net debt ($m) 40,128  (% GDP)  20.0%  * Gross debt ($m) 72,420   (% GDP) 36.2%

Actual 2012    * Net debt ($m) 50,671  (% GDP)  24.3%  * Gross debt ($m) 79,635  (% GDP)  38.2%

Actual 2013    * Net debt ($m)  55,835 (% GDP)  26.3%   *Gross debt ($m)  77,984  (% GDP)  36.7%

http://www.treasury.govt.nz/government/financialstatements/yearend/jun13/fsgnz-year-jun13.pdf  p.17

Note 24: Borrowings

Forecast 30 June 2013			Actual
Budget 12 $m	Budget 13 $m		30 June 2013 $m	30 June 2012 $m
		By type
57,296	58,713	Government bonds	57,377	53,850
4,700	3,576	Treasury bills	4,084	8,954
251	204	Government retail stock	199	229
6,244	7,183	Settlement deposits with Reserve Bank	7,575	5,917
2,401	2,035	Derivatives in loss1	3,188	2,807
1,471	1,499	Finance lease liabilities	1,454	1,515
30,844	27,570	Other borrowings	26,210	27,262
103,207	100,780	Total borrowings2	100,087	100,534
		By source
85,674	85,309	Core Crown	84,870	84,510
5,257	5,156	Crown entities	5,251	5,325
27,636	25,884	State-owned enterprises	24,839	25,374
(15,360)	(15,569)	Inter-segment eliminations	(14,873)	(14,675)
103,207	100,780	Total borrowings	100,087	100,534
		By maturity
34,345	30,511	Expected to be settled within one year	30,517	43,195
68,862	70,269	Expected to be outstanding for more than one year	69,570	57,339
103,207	100,780	Total borrowings	100,087	100,534
		By guarantee
76,212	74,924	Sovereign-guaranteed debt	75,684	75,701
26,995	25,856	Non-sovereign debt	24,403	24,833
103,207	100,780	Total borrowings	100,087	100,534

1. Derivatives are included in either borrowings or marketable securities depending on their gain or loss position at balance date. This treatment leads to fluctuations in individual items primarily due to exchange rate movements.
2. Total borrowings are the total borrowings (both sovereign-guaranteed and non-sovereign guaranteed) of the total Crown. This equates to the amount in the total Crown statement of financial position and represents the complete picture of whole-of-Crown debt obligations to external parties.
3. Total borrowings can be split into sovereign-guaranteed and non-sovereign-guaranteed debt. This split reflects the fact that borrowings by State-owned enterprises and Crown entities are not explicitly guaranteed by the Crown.

http://www.treasury.govt.nz/government/financialstatements/yearend/jun13/051.htm

A few questions arise out of this table:

Who was the PURCHASER of the $57.37 billion in Bonds?

-  If it was NZ, WHERE did we get the money from... ??  
-  WHO loaned it to the current NZ government, the Nats ??

Why did we owe $7.57 billion to The Reserve Bank?  

Who OWNS the Reserve Bank?    -  It's apparently NOT the NZ government.

Why is NZ playing in the Derivatives casino?

Who DECIDED to play in this casino ??

   ie:   Derivatives in loss  = $ 3.188 BILLION DOLLARS... "LOST" in the Derivatives game, June 30, 2014


Where did the "Other Borrowings" come from?  

   ie:  Other borrowings  $26.2 billion

Does "By maturity" mean:  "PAY THIS NOW" ??

By maturity    - as at June 30, 2013.  All figures are in BILLIONS.

		Expected to be settled within one year	30,517
		Expected to be outstanding for more than one year	69,570
		Total borrowings	100,087

What happens if we don't or can't ??

More primary sources:

http://www.treasury.govt.nz/economy/overview/2014/33.htm
http://www.treasury.govt.nz/economy/overview/2014/nzefo-14.pdf    Page 41

http://www.rbnz.govt.nz/statistics/discontinued/  
New Zealand's overseas debt, Discontinued in June 2013. E3

http://www.nationaldebtclocks.org/debtclock/newzealand

http://co-creatingournewearth.blogspot.co.nz/2014/08/new-zealand-overseas-debt-approx.html