Cook Islands Government Quarterly Financial Reports - June 2019

The Cook Islands Government (CIG) preliminary financial outcome for June 2019 quarter is now available.

Net Operating Balance and Fiscal Balance of General Government

June 2019 Quarter







Operating Revenue $185,152 $209,937 $24,785
Operating Expenditure $166,077 $154,283 $11,794
Net Operating Balance $19,075 $55,654 $36,579
Add Depreciation $11,978 $8,487 $3,491
Less Capital Expenditure -$47,530 -$36,318 -$11,212
Fiscal Balance -$16,477 $27,823 $44,300

The net operating balance for the period ended 30 June 2019 was a surplus of $55.65 million, which represents a $36.58 million higher compared to the surplus estimated for the quarter.

The favourable result was driven mainly by;

  1. Savings in overall operating expenditure of $11.79 million. The first three months of the financial year evidenced greater control of operating expenditure due to the delayed tabling of the Appropriation Bill as a result of the 2018 general election. Administered Payments and Ministry and Pa was the main contributor followed by Other Expenses Expenditures
  2. Crown Revenue collected was $24.78 million above Budget Estimates. Taxation Revenue and Fishing Licenses was the main contributor to the above budget estimates, due to end of the calendar year rush to purchase bilateral purse seine days. This was due to the high presence of Skip Jack Tuna in our EEZ in November and December.

Fiscal Balance

The overall fiscal balance for the reporting period was $27.82 million, after taking into account spending on Capital expenditure of $36.32 million and adding back depreciation funding of $8.49 million.

Compared to budget, spending on Capital projects were below estimates by $11.21 million. The variance was mainly due to timing of spending related to a number of projects especially projects administered by Cook Islands Investment Corporation.

Official Development Assistance (ODA)

Official Development Assistance was appropriated at the total value of $61.18 million in the 2018/19 Appropriation. This value includes the Core Sector Support Grant Funding Arrangement with New Zealand for Education, Health and Tourism.

The last quarter for the financial year 2018/19 reported a total spend of $27.32 million. The low spend for ODA in the first quarter of the financial year result in the delay of the appropriation bill being passed in parliament as well as the NZ triennium funding envelope not being confirmed due to ongoing negotiations on priorities and the design of the individual grant funding agreements.

Financial Position

Overall cash position at the end of the reporting period was $171.64 million. This includes $64.90 million of funds that are committed and set aside for specific purposes. This leaves $99.66 million of unencumbered cash reserve which Government can draw upon to fund future investments.

The CIG reported a gross debt of $94.88 million.This amount represents actual disbursed loans adjusted for debt service repayments. Other committed loans that have not being disbursed, like the Te Manatua Cable loan, are not included.

Net Debt was reported at $51.45 million at the end of the reporting period. Net debt adjusts the Gross Debt for the effect of the LRF held against those loans and the loans held on behalf of SOE’s.