Wellbeing Budget 2021

Our Recovery

Managing our assets and liabilities

Net worth continues to cushion the impact of COVID-19 and support the recovery

The strong fiscal position prior to COVID-19 allowed the Government to use its net worth to support lives and livelihoods through significant investments, like the Wage Subsidy Scheme. This involved increasing the Crown's liabilities through public borrowing in order to provide support to businesses and protect jobs during COVID-19.

The Crown's net worth is forecast to remain positive across the forecast period and stronger than forecast at Budget 2020 as the investments made through COVID-19 help grow the economy. The most recent year-end results show the Crown owned $393.4 billion of assets and had $277.5 billion of liabilities at 30 June 2020, giving a net worth of $115.9 billion.

Figure 18 - Net worth attributable to the Crown

Source: The Treasury

As stated in our long-term fiscal objectives, the Government intends to stabilise net core Crown debt as a percentage of GDP by the mid-2020s and then reduce it as conditions permit. This will help rebuild the Crown's net worth and provide for greater resilience against future shocks.

By June 2025, gross sovereign-issued debt (GSID), which mostly consists of New Zealand Government Bonds (NZGBs), is expected to be $199.8 billion (48.2 percent of GDP), compared to $276.8 billion (74.0 percent of GDP) forecast for 2023/24 at Budget 2020.

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