NZ’s Financial Statements Show Positive Trends, Net Debt Lower Than Forecast

Government’s Finances Track Ahead of Forecast, Economic Growth Remains a Priority.

The latest financial statements from the Treasury indicate that the Government's fiscal position is broadly in line with expectations, with some key indicators performing better than forecast in the Half Year Economic and Fiscal Update (HYEFU) last year.

The Interim Financial Statements of the Government of New Zealand for the six months ending 31 December 2024, published today, show a $400 million improvement in the Operating Balance before Gains and Losses excluding one-off and volatile items (OBEGALx) compared to previous forecasts. Additionally, net core Crown debt is reported to be $700 million lower than anticipated.

Finance Minister Nicola Willis reaffirmed the Government's commitment to fiscal responsibility and economic growth, stating, "The Government is committed to returning OBEGALx to surplus and ensuring that net core Crown debt falls below 40 per cent of GDP."

She emphasized that prudent financial management remains a priority, as it underpins broader economic objectives, including long-term growth, strategic investments, and resilience against future economic shocks.

The release of the financial statements aligns with the launch of the Government's Going for Growth progress report, which details current and upcoming initiatives aimed at strengthening the economy. The Government's focus remains on policies that encourage investment, create jobs, and ensure sustainable financial management.

"Economic growth is essential for improving the Government's financial position and ensuring we can continue to deliver the services and infrastructure that matter most to New Zealanders," Minister Willis added.

With a clear fiscal strategy in place, the Government continues to balance responsible financial management with investment in key areas, reinforcing its commitment to economic stability and prosperity for the country.