The
acronym
An acronym is a word or name formed from the initial components of a longer name or phrase. Acronyms are usually formed from the initial letters of words, as in ''NATO'' (''North Atlantic Treaty Organization''), but sometimes use syllables, as ...
OBERAC stands for: 'operating balance excluding revaluations and accounting changes'.
The government of
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
uses OBERAC as an indicator of current
cash flow
A cash flow is a real or virtual movement of money:
*a cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected ...
.
The OBERAC is not an accurate indicator of what the government has to spend, i.e. it is not the cash surplus. Instead, the OBERAC includes capital expenditure,
State Owned Enterprise retained profits, capital gains and many other minor issues.
References
Politics of New Zealand
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