Download Commonwealth General Government Sector

MEDIA RELEASE
SENATOR NICK MINCHIN
Minister for Finance and Administration
19 July 2002
27/2002
COMMONWEALTH GOVERNMENT MONTHLY FINANCIAL STATEMENTS
FOR THE MONTH OF MAY 2002
KEY POINTS

The underlying cash balance for the year to date 31 May 2002 was a deficit of $3,002 million.

The fiscal balance for the year to date 31 May 2002 was a deficit of $2,648 million.

The net operating result for the year to date 31 May 2002 was a deficit of $1,943 million.
FISCAL AND FINANCIAL OUTCOMES
AGGREGATES
ACTUAL
ACTUAL
ESTIMATE
2001-2002
2001-2002
2001-2002
MAY CUMULATIVE FULL YEAR*
YTD
$m
$m
$m
Underlying Cash Balance
Fiscal Balance
Headline Cash Balance
-715
-954
-1,647
-3,002
-2,648
-3,808
-1,193
-3,045
-1,819
Revenue (a)
Expenses (a)
Net Operating Result
14,990
15,782
-792
153,413
155,356
-1,943
168,400
172,060
-3,661
134,342
175,503
-41,161
134,342
175,503
-41,161
132,275
182,131
-49,855
Assets
Liabilities
Net Assets (a)
* As published in the Budget Strategy and Outlook 2002-03.
(a) Revenue, expenses and net assets are on a AAS31 basis.
Care needs to be taken when comparing monthly or cumulative data across years, and to full year estimates, since
factors such as the introduction of The New Tax System and the accrual framework, and the timing of payments and
policy decisions can have a large impact on fiscal aggregates from one year to the next and on year to date outcomes.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
1
FISCAL OUTCOMES
UNDERLYING CASH BALANCE
The main components of the underlying cash balance are cash from operations and movements in the net
investment in non-financial assets.
The underlying cash balance for the year to date 31 May 2002 was a deficit of $3,002 million.
The underlying cash balance as at the end of May 2002 is lower than a pro-rata of the revised Budget estimate (which
equals a deficit of $1,094 million). The main factors contributing to the difference are:

lower taxation collections in May, while noting the final quarter overall is the strongest collection period for
taxation receipts;

higher grant payments due mainly to payments in relation to a number of education grants that are made at the
commencement of the academic year; and

higher subsidies payments relating to residential care prepayments.
Partially offset by

lower personal benefits payments due to seasonal demand for Newstart;

lower payments to suppliers reflecting seasonal patterns in Defence purchasing; and

lower suppliers payments relating to large one off expenses such as the Tax Pack expected to be made in June.
Investing cash receipts are also lower than a pro-rata of the revised Budget estimate reflecting that the sale of some
non-financial assets are to occur in June. This is partially offset by the lower level of purchases of property, plant and
equipment by Defence and the construction of an immigration reception and processing centre on Christmas Island.
FISCAL BALANCE
The fiscal balance for the year to date 31 May 2002 was a deficit of $2,648 million. The main components of the
fiscal balance are the GFS net operating balance, which was a deficit of $2,697 million, and negative net capital
investment of $49 million for the year to date 31 May 2002 (refer to the Reconciliation of AAS31 Operating Result
to Fiscal Balance for further detail).
FINANCIAL OUTCOMES
OPERATING RESULT
The operating result for the year to date 31 May 2002 was a deficit of $1,943 million. The decline largely reflects
lower taxation collections in the month of May, consistent with the seasonal trend of lower collections in the months
between the submission of the quarterly Business Activity Statements.
REVENUES
Total revenue for the year to date 31 May 2002 was $153,413 million, comprising $137,517 million in taxation
revenue and $15,896 million in non-tax revenue.
The main components in taxation revenue were Income Tax Withholding ($73,476 million, including residual
payments of $55 million and $26 million from the now discontinued PAYE and Prescribed Payments Systems
respectively), companies ($25,081 million) and excise duty ($18,065 million), and individuals refunds which reduced
net revenue by ($10,204 million).
The introduction of The New Tax System affects both the timing and quantity of taxation revenue received by the
Commonwealth compared to previous years.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
2
EXPENSES
Total expenses for the year to date 31 May 2002 were $155,356 million, which is 2 per cent below a pro-rata of the
revised Budget estimate of $157,722 million. Expenses for the year to date are not always directly comparable to full
year estimates due to seasonal effects on Commonwealth administered expenses.
Factors affecting expenses are outlined below:

lower suppliers expenses reflecting seasonal patterns in Defence purchasing. Defence expect suppliers expenses
to be consistent with the revised Budget estimate by the end of the financial year. Defence depreciation
expenses are also lower but are expected to increase after end of year adjustments;

lower suppliers expenses due to large one-off expenses such as the Tax Pack being incurred in the month of
June;

lower expenses relating to the corporatisation of the Snowy Mountains Hydro Electric Authority as was delayed
from May to June;

lower expenses relating to write down of bad and doubtful debts for personal benefits, as these are only adjusted
annually, and the Student Financial Supplement Scheme which was delayed pending the results of an actuarial
assessment; and

lower personal benefits expenses due to seasonal demand for Newstart Allowance.
Offset by:

higher grant expenses due mainly to:

schools (Government and Non-Government), higher education and vocational education training as the
funding is recognised on a calendar year basis; and

majority of the payments in relation to Health Care Agreements have already been made.

higher goods and services expense partly due to higher than estimated Child Support payments; and

higher than estimated expenses in relation to the write down of non-financial assets by Defence.
ASSETS AND LIABILITIES
The net asset balance within the General Government sector has improved from a negative net asset position of
$46,305 million at 30 June 2001 to a negative net asset position of $41,161 million at 31 May 2002.
Nick Minchin
Minister for Finance
and Administration
19 July 2002
Contact:
I J Watt
Secretary to the Department of
Finance and Administration
Senator Minchin’s Office:
David Wawn
Department of Finance and Administration: Jim Kerwin
19 July 2002
(02) 6277 7400
(02) 6215 3769
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
3
COMMONWEALTH GENERAL GOVERNMENT SECTOR –
STATEMENT OF FINANCIAL PERFORMANCE
ACTUAL
2001-2002
ESTIMATE
2001-2002
MAY CUMULATIVE FULL YEAR*
YTD
$m
$m
$m
Note
Revenues
Taxation
Income tax
Indirect tax
Fringe Benefits Tax
Other taxes
Total Taxation Revenue
Non-Taxation
Sales of goods and services
Interest and dividends
Net foreign exchange gains
Net gains from sales of assets
Other sources of non-tax revenue
Total Non-Tax Revenue
Total Revenues
ACTUAL
2001-2002
1
2
1
Expenses
Goods and Services
Employees
Suppliers
Depreciation and amortisation
Net write down of assets
Net foreign exchange losses
Net losses from the sale of assets
Other goods and services expenses
Total Goods and Services
Subsidies Benefits and Grants
Personal benefits
Subsidies
Grants
Total Subsidies Benefits and Grants
Interest and Other
Interest
Other financing costs
Total Interest and other
Total Expenses
Operating Result
Extraordinary items
Operating result after extraordinary items
10,406
2,264
310
133
13,113
109,706
23,076
3,570
1,165
137,517
120,435
24,864
3,630
1,335
150,265
345
261
529
11
731
1,877
14,990
3,324
7,809
1,280
69
3,414
15,896
153,413
3,865
8,501
646
2,424
2,699
18,135
168,400
1,635
1,419
226
630
39
0
613
4,562
17,870
11,718
2,802
2,190
90
19
5,240
39,929
19,440
13,259
3,739
4,395
0
8
5,562
46,404
6,736
652
3,253
10,642
67,704
6,885
34,069
108,659
74,263
7,547
36,706
118,517
574
4
579
15,782
-792
6,720
48
6,769
155,356
-1,943
7,073
67
7,140
172,060
-3,661
0
0
0
-792
-1,943
-3,661
This table is prepared on a AAS 31 basis
* As published in the Budget Strategy and Outlook 2002-03.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
4
COMMONWEALTH GENERAL GOVERNMENT SECTOR –
STATEMENT OF FINANCIAL POSITION
ACTUAL
31-May-02
ACTUAL#
30-Jun-01
ESTIMATE*
30-Jun-02
$m
$m
$m
822
29,970
36,201
632
32
67,657
1,179
26,534
44,070
516
36
72,335
1,780
30,785
34,370
524
16
67,475
16,999
42,826
1,081
3,768
2,012
66,685
134,342
16,669
41,955
1,052
3,491
1,538
64,705
137,040
16,471
42,650
1,136
3,350
1,192
64,800
132,275
63,834
6,595
237
272
3,204
74,141
67,338
6,550
337
293
5,154
79,672
64,045
6,403
258
293
3,774
74,774
88,203
1,850
2,667
205
2,653
5,783
101,361
175,503
85,172
1,712
2,458
252
8,247
5,832
103,673
183,345
88,509
1,193
2,794
231
8,558
6,072
107,356
182,131
Net Assets (a)
-41,161
-46,305
-49,855
Equity
Accumulated results
Reserves
Capital
Total equity
-82,435
41,274
0
-41,161
-81,241
34,936
0
-46,305
-83,685
33,829
0
-49,855
(a) Opening net assets
Operating result after extraordinary items
Asset revaluation reserve
Other movements
Closing net assets
-46,305
-1,943
928
6,159
-41,161
-52,890
1,531
2,239
2,815
-46,305
-46,305
-3,661
191
-81
-49,855
Assets
Financial assets
Cash
Receivables
Investments
Accrued revenue
Other financial assets
Total financial assets
Non-financial assets
Land and buildings
Infrastructure
Intangibles
Inventories
Other non-financial assets
Total non-financial assets
Total assets
Liabilities
Debt
Government securities
Loans
Leases
Deposits
Other debt
Total debt
Provisions and payables
Employees
Suppliers
Personal benefits payable
Subsidies payable
Grants payable
Other provisions and payables
Total provisions and payables
Total liabilities
This table is prepared on a AAS 31 basis
#
As published in the Consolidated Financial Statements for the year ended 30 June 2001.
* As published in the Budget Strategy and Outlook 2002-03.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
5
COMMONWEALTH GENERAL GOVERNMENT SECTOR –
STATEMENT OF CASH FLOWS
ACTUAL
2001-2002
MAY
ACTUAL
2001-2002
CUMULATIVE
YTD
ESTIMATE
2001-2002
FULL YEAR*
$m
$m
$m
Operating Activities
Cash received
Taxes
Sales of goods and services
Interest
Dividends
GST receipts related to purchases/sales
Other
Total operating cash received
12,808
207
241
4
205
297
13,762
134,052
3,247
2,912
4,709
1,839
2,749
149,508
148,740
4,038
3,532
4,760
2,145
2,468
165,683
Cash used
Payments to employees
Payments to suppliers
Subsidies paid
Personal benefits
Grant payments
Interest and other financing costs
GST payments related to purchases/sales
Other (a)
Total operating cash used
Net Cash from Operating Activities
1,313
1,487
637
6,443
2,960
591
2
639
14,072
-310
14,772
13,384
7,277
67,665
33,732
6,915
116
5,193
149,054
454
16,097
15,666
7,577
73,976
36,146
7,122
312
5,322
162,219
3,464
0
244
567
68
-912
-356
-10
-1,210
655
-824
-3,979
7,444
3,540
853
-946
-5,331
6,327
1,470
835
45
-3,460
-890
-3,440
-827
880
-4,350
-4,268
-640
-356
666
Investing Activities
Net Cash received/(used)
Proceeds from asset sales program
Proceeds from sales of property, plant and equipment and
intangibles
Net loans, advances and HECS
Purchase of property, plant and equipment and intangibles
Other investing cash receipts/(payments)
Net Cash from Investing Activities
Financing Activities
Net Cash received/(used)
Net repayments of borrowings
Other financing cash receipts/(payments)
Net cash from Financing Activities
Net increase / (decrease) in cash held
This table is prepared on a AAS 31 basis
* As published in the Budget Strategy and Outlook 2002-03.
(a) Includes GST receipts/payments related to purchase/sales.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
6
COMMONWEALTH GENERAL GOVERNMENT SECTOR –
STATEMENT OF FINANCIAL PERFORMANCE BY FUNCTION
ACTUAL
ACTUAL
2001-2002
2001-2002
MAY CUMULATIVE
YTD
Revenues by Source
Taxation
Non-taxation
Total revenues
Expenses by Purpose
General Public Services
Defence
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry and Fishing
Mining and Mineral Resources
(other than fuels); Manufacturing
and Construction
Transport and Communication
Other Economic Affairs
Other Purposes
Public Debt Interest
Nominal Superannuation Interest
General Purpose InterGovernment Transactions
Natural Disaster Relief
Contingency Reserve
Asset Sales
Total Expenses
Operating Result
ESTIMATE
2001-2002
FULL YEAR*
$m
$m
$m
13,113
1,877
14,990
137,517
15,896
153,413
150,265
18,135
168,400
1,066
1,527
293
891
2,542
6,229
183
215
268
181
11,654
10,556
1,747
10,831
24,975
63,475
2,033
1,820
2,893
1,570
11,639
11,637
1,862
11,996
27,127
69,864
2,206
2,042
5,526
1,797
116
272
360
914
2,289
3,670
1,167
2,872
4,155
558
385
6,485
4,849
6,953
5,239
685
12
0
0
15,782
5,508
67
0
22
155,356
5,993
108
-141
19
172,060
-792
-1,943
-3,661
This table is prepared on a AAS 31 basis
* Data in this table are consistent with that published in Table 3 Statement 6 of the Budget Strategy and Outlook 2002-03.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
7
COMMONWEALTH GENERAL GOVERNMENT SECTOR –
RECONCILIATION OF AAS31 OPERATING RESULT TO FISCAL BALANCE
ACTUAL
2001-2002
ACTUAL
2001-2002
ESTIMATE
2001-2002
MAY CUMULATIVE FULL YEAR*
YTD
$m
$m
$m
AAS31 Operating result
less assets recognised for the first time
plus revaluations / writedowns from superannuation
plus writedown of assets/bad and doubtful debts
less mutually agreed writedowns
plus net foreign exchange losses
plus other economic revaluations (a)
less profit (loss) on the sale of assets
less cost of asset sales
plus Defence weapons platform depreciation
less Defence weapons platform investment
less reversal of interest capitalisation
GFS Net Operating Balance
less purchase of property plant and equipment and
intangibles
less net assets acquired under finance leases
less other non-financial assets
less increase in inventories
plus proceeds from sales of property, plant and
equipment
plus Defence weapons platform investment
plus depreciation and amortisation excl weapons
plus reversal of interest capitalisation
Fiscal Balance (GFS Net Lending)
-792
-1,943
-3,661
0
652
630
106
-490
-619
11
-1
137
88
0
0
652
2,190
443
-1,190
-1,053
50
7
1,512
2,365
0
8
0
4,395
280
-646
101
2,416
29
1,980
3,000
31
-686
-2,697
-3,595
450
-14
21
55
3,892
-70
191
173
5,401
-83
-78
-140
67
88
89
0
580
2,365
1,290
0
860
3,000
1,759
31
-954
-2,648
-3,045
* Data in this table are consistent with that published in the Budget Strategy and Outlook 2002-03.
(a) Net repurchase premia (accruals basis) and net losses/gains on swap transactions are included in this item.
COMMONWEALTH GENERAL GOVERNMENT SECTOR –
DERIVATION OF UNDERLYING AND HEADLINE BALANCE
ACTUAL
2001-2002
MAY
ESTIMATE
2001-2002
FULL YEAR*
$m
ACTUAL
2001-2002
CUMULATIVE
YTD
$m
-310
-73
454
-202
3,464
-262
Plus: Net cash from investments in non-financial assets
Proceeds from sales of property, plant and equipment
and intangibles
Less: Purchase of property, plant and equipment and intangibles
68
414
655
3,979
853
5,331
Less: Finance leases and similar arrangements
-14
-70
-83
-715
-3,002
-1,193
Net cash from operating activities
Plus: Payments classified as GFS adjustments
Underlying Cash Balance
$m
Plus: Net Advances
Proceeds from asset sales program
Net advance receipts/(payments) (a)
Equals Headline Cash Balance
0
244
567
-932
-1,050
-1,193
-1,647
-3,808
-1,819
* Data in this table are consistent with that published in the Budget Strategy and Outlook 2002-03.
(a) Includes transactions classified as net advances for GFS purposes.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
8
NOTES:
With the introduction of Business Activity Statements and Instalment Activity Statements last financial year,
taxpayers provide information on payments associated with several types of tax when lodging the statement and
paying the aggregate net tax amount. Thus, while total tax collections are known with certainty at the end of each
month, the distribution across the relevant heads of revenue cannot be finalised until all statements are received
and processed. The outcomes for some revenue items provided in this statement are thus estimates, in accordance
with the best judgement of the Taxation Commissioner, and subject to revision. The taxation revenue items not
affected are: Other withholding tax, Petroleum Resource Rent Tax, Excise duty, Customs duty, Other Taxes and
Individuals Refunds.
The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in the
Statement of Revenue and Expenses.
All taxation items in these notes are reported on an AAS31 basis.
NOTE 1: INCOME TAX
ACTUAL
2001-2002
MAY
$m
INDIVIDUALS AND OTHER WITHHOLDING TAX
Gross income tax withholding (a)(b)
Gross other individuals (c)
Less refunds
Total individuals and other withholding tax
7,491
2,591
522
9,560
-
73,476
15,977
10,204
79,249
80,940
16,725
10,350
87,315
802
44
0
847
-
25,081
4,071
1,305
30,458
27,480
4,280
1,360
33,120
10,406
310
109,706
120,435
3,570
3,630
OTHER SOURCES
Companies
Superannuation funds (d)
Petroleum Resource Rent Tax
Total income tax from other sources
Total income tax
Fringe Benefits tax
ACTUAL ESTIMATE
2001-2002
2001-2002
CUMULATIVE FULL YEAR*
YTD
$m
$m
* As published in the Budget Strategy and Outlook 2002-03.
(a) The Pay As You Go (PAYG) system was introduced generally from 1 July 2000. It includes revenue from taxpayers
who were previously subject to PAYE withholding arrangements, or who were in the PPS and will now be subject to
PAYG withholding arrangements from 1 July 2000.
(b) Previously reported as Pay As You Go (Withholding) and other withholding. Other withholding was previously reported
under other sources of income tax, and includes amounts withheld for failure to quote a Tax File Number or an
Australian Business Number, interest, dividends and royalty payments to non-residents, and payments to aboriginal groups
for the use of land for mineral exploration and mining.
(c) Includes individuals making PAYG instalment payments.
(d) Includes superannuation contributions surcharge.
NOTE 2: INDIRECT TAX
ACTUAL
2001-2002
MAY
$m
Excise duty
Customs duty
Other indirect tax
Total indirect tax revenue
1,514
678
71
2,264
ACTUAL ESTIMATE
2001-2002
2001-2002
CUMULATIVE
FULL
YTD
YEAR*
$m
$m
18,065
4,292
718
23,076
19,500
4,604
760
24,864
* As published in the Budget Strategy and Outlook 2002-03.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
9
In regard to GST revenue, AAS31 and other relevant accounting standards would suggest the gross amount of
GST be included in the Commonwealth’s Financial Statements. However, the clear policy intent of the
Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations is that the GST is a
State tax collected by the Commonwealth in an agency capacity. Therefore, accrued GST revenues and associated
payments to the States and Territories are not disclosed in these statements.
NOTE 3: GOODS AND SERVICES TAX
ACTUAL
2001-2002
ACTUAL
2001-2002
MAY CUMULATIVE
YTD
$m
$m
GST Revenue (a)
(collected on behalf of the States)
1,443
25,628
ESTIMATE
2001-2002
FULL
YEAR*
$m
27,630
* As published in the Budget Strategy and Outlook 2002-03.
(a) GST revenue is presented in this note on an accrual basis. This differs slightly from GST cash receipts, on
which payments to the States and Territories are based.
NOTE:
Style Conventions
(1) Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are
due to rounding.
International Monetary Fund (IMF) Special Data Dissemination Standards (SDDS)
(1) In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations, which
is contained in the Commonwealth Financial Statements, is given on the IMF's Data Dissemination Bulletin Board at
http//dsbb.imf.org.
(2) Monthly and quarterly data on debt guaranteed by the Commonwealth (central) government that meet the coverage and timeliness
requirements of the SDDS are published on the AOFM website at
http://www.aofm.gov.au/borrowing_programme/CommonwealthGovernmentSecurities.htm. In accordance with the IMF SDDS,
quarter ahead notice of the approximate date of release of the data on debt guaranteed by the Commonwealth (central) government,
is given on the IMF's Data Dissemination Bulletin Board at http://dsbb.imf.org.
19 July 2002
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
10