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The Hon Lindsay Tanner MP Cabinet Minister for Finance and Deregulation

Media Release

19/2008
30 May 2008

Australian Government Monthly Financial Statements
March and April 2008

KEY POINTS

AGGREGATES ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
Revenue  219778 36765 256543 303831
Expenses 205420 23780 229200 281070
Net operating balance  14359 12985 27344 22762
Net capital investment  919 188 1107 2318
Fiscal balance  13440 12797 26236 20443
Underlying cash balance  5859 10628 16487 16815
Headline cash balance  8067 13354 21422 25380
Total assets 227068 12173 239240 239484
Total liabilities 206069 637 206706 209776
Net worth 20998 11536 32535 29709
Net debt  -27666 -7509 -35175 -42639

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.
* As published in Budget Paper 1 Statement 9 on page 9-3.

The Australian Government monthly financial statements for 2007-08 have been re-designed to provide Government Finance Statistics (GFS) information only, whilst past statements included an AAS based set of statements, all analysis and commentary was on a GFS basis.

As a result of a change in accounting policy by the Australian Government which was included in the Consolidated Financial Statements 2006-07 published on 20 December 2007, these statements now include GST as an Australian Government tax with associated payments to the States and Territories treated as a grant expense.

The 2008-09 Budget adopted a new accounting standard, AASB1049, which harmonises the two standards used in government reporting, GFS and Australian Accounting Standards (AAS).  To ensure consistency across the 2007-08 financial year, the monthly financial statements will only reflect this change from 1 July 2008.  The primary difference between GFS and AASB1049 is due to the accounting treatment of Defence Weapons Platforms (DWP). Under GFS, DWP are treated as expenses rather than assets, whilst under AASB1049 DWP are treated as assets.

Care needs to be taken when comparing monthly or cumulative data across years and to full year estimates. Revenues and expenses do vary from month-to-month.  The accrual framework, including 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.

FISCAL OUTCOMES

Underlying Cash Balance

The main components of the underlying cash balance are cash from operations and cash movements in the net investment in non-financial assets.

The underlying cash balance for the year to 30 April 2008 was a surplus of $16,487 million. This underlying cash balance is $2.5 billion higher than the 2008-09 Budget pro rata. The difference reflects a number of individual variations including the following:

Movements in underlying cash receipts:
Movements in underlying cash payments:

Higher payments compared to pro rata Budget estimates for:

Fiscal Balance

The fiscal balance for the year to 30 April 2008 was a surplus of $26,236 million.  This fiscal balance is $9,200 million higher than the 2008-09 Budget pro rata estimate.

FINANCIAL OUTCOMES

Revenues and Expenses

GFS Expenses are $5,025 million lower when compared with a pro rata of the 2008-09 Budget estimate whilst GFS Revenue is $3,351 million higher when compared with a pro rata of the 2008-09 Budget estimate. 

The main reason for the lower expenses are due to the timing of payments to suppliers and personal benefit payments, whilst higher revenue is due to the seasonality of revenue collections.

Assets and Liabilities

The net worth balance within the General Government sector is a positive net asset position of
$32,535 million at 30 April 2008.

Lindsay Tanner MP
Minister for Finance and Deregulation
30 May 2008

I J Watt
Secretary to the Department of Finance and Deregulation
30 May 2008


Contact:
Lindsay Tanner MP’s Office: Nardia Dazkiw - (02) 6277 7400

Department of Finance and Deregulation: Emma McDonald - (02) 6215 2383

Australian Government General Government Sector – INCOME STATEMENT

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
GFS revenue    
Taxation revenue 206,392 35,295 241,687 286,382
Sales of goods and services 3,958 561 4,519 5,369
Interest income 3,709 540 4,249 5,195
Dividend income 2,582 197 2,779 2,904
Other 3,137 173 3,310 3,982
Total GFS revenue 219,778 36,765 256,543 303,831
GFS expenses    
Gross operating expenses    
Depreciation 1,916 174 2,090 2,117
Superannuation 1,973 202 2,176 2,765
Salaries and wages 11,024 1,091 12,115 14,958
Payment for supply of goods and services 40,079 5,083 45,163 56,307
Other operating expenses 2,893 315 3,209 3,895
Total gross operating expenses 57,886 6,867 64,753 80,043
Nominal superannuation interest expense 4,504 500 5,005 6,210
Other interest expenses 3,064 396 3,460 4,118
Current transfers    
Grant expenses 66,836 8,416 75,252 94,691
Subsidy expenses 5,492 553 6,045 7,222
Personal benefit payments in cash 62,314 6,462 68,775 86,170
Total current transfers 134,642 15,431 150,073 188,083
Capital transfers 5,324 586 5,909 2,617
Total GFS expenses 205,420 23,780 229,200 281,070
Net operating balance 14,359 12,985 27,344 22,762
Net acquisition of non-financial assets    
Purchases of non-financial assets 2,434 287 2,721 3,492
less Sales of non-financial assets 157 39 196 248
less Depreciation 1,916 174 2,090 2,117
plus Change in inventories 423 106 529 807
plus Other movements in non-financial  assets 135 8 143 384
Total net acquisition of non-financial assets 919 188 1,107 2,318
Net lending/fiscal balance 13,440 12,797 26,236 20,443

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.

Australian Government General Government Sector – BALANCE SHEET

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
30-Jun-08
$m
GFS assets

 

 

 

Financial assets

 

 

 

Cash and deposits

1,541

461

1,928

Advances paid

22,121

17,645

24,811

Investments, loans and placements

68,590

82,793

82,251

Other non-equity assets

43,114

44,501

29,838

Equity

43,101

44,317

45,108

Total financial assets

178,467

189,717

183,937

Non-financial assets

 

 

 

Land

6,895

7,332

6,946

Buildings

16,881

17,202

17,014

Plant, equipment and infrastructure 

10,230

10,367

10,979

Inventories

3,382

3,368

6,355

Heritage and cultural assets

8,225

8,274

8,249

Other non-financial assets

2,986

2,981

6,004

Total non-financial assets

48,600

49,523

55,547

Total GFS assets

227,068

239,240

239,484

GFS liabilities

 

 

 

Deposits held

308

284

263

Government securities

58,425

58,351

59,195

Loans

5,445

6,676

6,538

Other borrowings

408

414

356

Superannuation liability

105,568

105,880

108,114

Other employee entitlements and provisions

8,600

8,472

8,545

Other non-equity liabilities

27,315

26,630

26,764

Total GFS liabilities

206,069

206,706

209,776

Net worth

20,998

32,535

29,709

Net financial worth

-27,602

-16,989

-25,838

Net debt

-27,666

-35,175

-42,639

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.

Australian Government General Government Sector – CASH FLOW STATEMENT

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
Cash receipts from operating activities    
Taxes received 198,352 33,839 232,191 278,536
Receipts from sales of goods and services 3,897 584 4,481 5,340
Interest receipts 2,447 1,032 3,480 5,102
Dividends 2,109 508 2,617 2,904
Other receipts 2,733 178 2,911 3,486
Total operating receipts 209,538 36,142 245,679 295,368
Cash payments for operating activities    
Payments for goods and services -39,215 -4,678 -43,893 -56,413
Grants and subsidies paid -77,236 -9,310 -86,546 -101,480
Interest paid -2,739 -525 -3,264 -3,788
Personal benefit payments -62,995 -7,240 -70,235 -85,768
Salaries, wages and other entitlements -14,442 -1,614 -16,056 -20,140
Other payments for operating activities -3,450 279 -3,171 -3,651
Total operating payments -200,075 -23,089 -223,164 -271,240
Net cash flows from operating activities 9,463 13,053 22,516 24,127
Cash flows from investments in non-financial assets    
Sales of non-financial assets 162 39 201 254
Purchases of non-financial assets -1,725 -1,235 -2,960 -3,818
Net cash flows from investments in non-financial assets -1,563 -1,196 -2,759 -3,564
Net cash flows from investments in financial assets for policy purposes 247 1,519 1,766 4,848
Cash flows from investments in financial assets for liquidity purposes    
Increase in investments -8,807 -14,635 -23,443 -26,332
Net cash flows from investments in financial assets for liquidity purposes -8,807 -14,635 -23,443 -26,332
Cash flows from financing activities    
Borrowing (net) 1,197 477 1,674 1,807
Deposits received (net) 47 -24 24 0
Other financing (net) -196 -275 -471 -115
Net cash flows from financing activities 1,048 179 1,227 1,693
Net increase/decrease in cash held 388 -1,080 -693 772
Net cash from operating activities and investments in non-financial assets 7,900 11,857 19,757 20,564
Finance leases and similar arrangements -79 -21 -101 -32
GFS cash surplus(+)/deficit(-) 7,820 11,835 19,656 20,532
less Future Fund earnings 1,961 1,208 3,168 3,717
Equals underlying cash balance 5,859 10,628 16,487 16,815
plus net cash flows from investments in financial assets for policy purposes 247 1,519 1,766 4,848
plus Future Fund earnings 1,961 1,208 3,168 3,717
Equals headline cash balance 8,067 13,354 21,422 25,380

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.

Australian Government General Government Sector – STATEMENT OF OTHER ECONOMIC FLOWS

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
YTD     
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
Opening net worth 2,689 2,689 2,689
Opening net worth adjustments(a) 8,291 8,291 39,853
Adjusted opening net worth 10,980 10,980 42,542
Change in net worth from operating transactions 14,359 27,344 22,762
Change in net worth from other economic flows    
Revaluation of equity(b) 159 385 -1,994
Net writedowns of assets 
(including bad and doubtful debts)
-4,476 -4,211 -3,117
Assets recognised for the first time -95 -95 235
Actuarial revaluations 0 0 -1,423
Net foreign exchange gains -410 83 202
Net swap interest received -102 -126 -178
Market valuation of debt -733 -497 -662
Other economic revaluations(c) 1,318 -1,329 -28,658
Total other economic flows -4,340 -5,789 -35,595
Closing net worth 20,998 32,535 29,709

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.
(a) Change in net worth arising from a change in 06-07 outcomes.
(b) Revaluations of equity reflects changes in the market valuation of commercial entities. This line also reflects any equity revaluations at the point of disposal or sale.
(c) Largely reflects revaluation of assets and liabilities.

Australian Government General Government Sector – INCOME STATEMENT BY FUNCTION

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
GFS Expenses by Purpose    
General Public Services 14,166 1,312 15,478 16,631
Defence 13,077 1,803 14,880 17,885
Public Order and Safety 2,734 234 2,969 3,788
Education  16,020 1,205 17,225 18,620
Health  31,939 3,957 35,896 44,455
Social Security and Welfare  70,565 7,675 78,240 97,230
Housing and Community Amenities 2,047 178 2,225 3,083
Recreation and Culture 1,895 217 2,112 2,826
Fuel and Energy 3,695 409 4,104 5,103
Agriculture, Forestry and Fishing 2,637 370 3,007 4,085
Mining and Mineral Resources (other than fuels); Manufacturing and Construction 1,192 18 1,209 1,846
Transport and Communication 2,796 430 3,226 4,486
Other Economic Affairs 4,377 577 4,954 6,467
Other Purposes    
Public Debt Interest 2,638 294 2,932 3,538
Nominal Superannuation Interest 1,532 170 1,703 6,210
General Purpose Inter-Government Transactions 33,647 5,009 38,656 45,493
Natural Disaster Relief  439 -60 378 99
Contingency Reserve (a) 24 -17 7 -776
Total GFS Expenses 205,420 23,780 229,200 281,070

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.
(a) Asset sale related expenses are now treated as a component of the contingency reserve.

NOTES:

The framework used as a basis for these statements and notes is generally consistent with the requirements of GFS. The Financial Management and Accountability Act 1997 requires monthly financial statements to be consistent with the Budget estimates, accordingly, and pursuant to the Charter of Budget Honesty Act 1998, this presentation covers the General Government sector on a GFS basis.

With the introduction of Business Activity Statements and Instalment Activity Statements in 2000-2001, 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: 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.

Note 1: Income Tax

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
INDIVIDUALS AND OTHER WITHHOLDING TAX    
Gross income tax withholding    85,896   9,929   95,825   114,610
Gross other individuals   17,483   5,033   22,516   30,130
Less refunds   16,441   854   17,295   19,640
Total individuals and other withholding tax   86,938   14,109   101,046   125,100
OTHER SOURCES    
Companies    47,724   11,465   59,189   66,480
Superannuation funds (a)   9,525   1,454   10,979   11,710
Petroleum Resource Rent Tax    1,472   328   1,800   1,840
Fringe Benefits tax (b)   2,627   844   3,471   3,900
Total income tax from other sources    61,347   14,092   75,439   83,930
Total income tax   148,285   28,200   176,485   209,030

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.
(a) Includes superannuation contributions surcharge.
(b) Negative collections indicate refunds exceed collections.

Note 2: Indirect Tax

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
Excise duty   18,140   1,376   19,515   23,390
Customs duty   4,559   484   5,043   5,990
Other indirect tax (including GST)   35,408   5,235   40,643   47,972
Total indirect tax revenue   58,107   7,094   65,201   77,352

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.

Note 3: Goods and Services Tax

  ACTUAL
2007-2008
YTD
March
$m
ACTUAL
2007-2008
April
$m
ACTUAL
2007-2008
YTD
April
$m
BUDGET ESTIMATE
2007-2008
FULL YEAR*
$m
GST Revenue (a)  32,697  4,922   37,619  44,370

*These numbers are budget estimates presented on a GFS basis, consistent with the 2007-08 Budget. They differ from the figures presented in the 2008-09 Budget which were based on the new harmonised ABS GFS and accounting standard (AASB 1049) for the first time.
(a) GST revenue is presented in this note on an accrual basis. This differs 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 Australian Government 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 Australian Government (central government) that meet the coverage and timeliness requirements of the SDDS are published on the AOFM website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32. In accordance with the IMF SDDS, the approximate date of release of the data on debt guaranteed by the Australian Government (central government), is given on the IMF's Data Dissemination Advance Release Calender http://dsbb.imf.org.

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