Executive Summary
Managing Future Demands
managing the Crown balance sheet. Adopting this approach across the whole of
government means we are looking at all of the Government’s assets and liabilities – a net
stock of around $100 billion – to ensure our investments and risks are managed
effectively.
alter over time depending on
government decisions on how much to
invest, where to allocate capital and
returns from commercial exposures.
The major changes in the forecast
period reflect the Government’s focus
on infrastructure, together with
retained earnings within the
commercial operations.
forecast to increase in value by
$32 billion (about 15%). About
$11 billion of this is in social assets,
largely in roads; $16 billion in commercial assets, mainly in electricity generation and
transmission; and about $5 billion in financial assets.
spending, it is current or future taxpayers who bear the cost. Most investment over the next
few years is largely expected to be debt funded, imposing an interest cost on taxpayers.
Others, such as electricity transmission, are ultimately funded by consumers. In either case
it is essential that the Government ensure that capital is both efficiently allocated and well
managed. For example, a 5% improvement in capital efficiency across the entire balance
sheet would fund the Government’s new capital allowance for nearly a decade.
policy drivers of productive infrastructure and better delivery of public services. Major
infrastructure investments funded by new capital in Budget 2010 are set out in Table 3.
the $200 million provided in Budget 2009).
and faster Broadband in schools, and
archiving.
period
