2012-13 Government Mid-year Financial Projections Statement

2012-13 Government Mid-year Financial Projections StatementNet Debt 7 and Other LiabilitiesNet debt for the total public sector is forecast to reach $24.8 billion by 30 June 2016.This increase largely reflects the net impact of:the lower than expected net debt outturn at 30 June 2012 (down $646 million);the impact of the weaker operating outlook of the general government sector and thepublic corporations sectors (a $2.5 billion increase in net debt);higher infrastructure spending (increasing net debt by $1.0 billion);higher sales of land and fixed assets, mainly housing stock disposal by theHousing Authority (net debt down $804 million); andother movements in net debt including revaluations of financial assets ($151 millionreduction in net debt).The following table summarises changes in total public sector net debt projections sincethe 2012-13 Budget.7Net debt is a balance sheet measure based on Government Finance Statistics concepts. It is calculated as the difference betweenliquid financial assets (including loans made by governments) and financial liabilities that attract a debt servicing cost. Net debt isan important indicator of the strength of the public sector’s financial position and the sustainability of the public sector’s futurecall on cash.28