Media Release

32/2009
5 June 2009

Australian Government Monthly Financial Statements
April 2009

KEY POINTS

The underlying cash balance for the 2008-09 year to 30 April 2009 was a deficit of $16,496 million.
The fiscal balance for the 2008-09 year to 30 April 2009 was a deficit of $9,139 million.

AGGREGATES	ACTUAL 2008-2009 April $m	ACTUAL 2008-2009 YTD April $m	BUDGET ESTIMATE 2008-2009 FULL YEAR* $m
Revenue	35,522	250,915	295,939
Expenses	30,502	258,264	324,443
Net operating balance	5,020	-7,349	-28,504
Net capital investment	115	1,790	4,347
Fiscal balance	4,905	-9,139	-32,851
Underlying cash balance	3,911	-16,496	-32,114
Headline cash balance	-302	-19,082	-35,939
Total assets		289,280	293,738
Total liabilities		236,284	282,981
Net worth		52,996	10,756
Net debt		-21,702	-4,697

*As published in the 2009-10 Budget.

The Australian Government in the Budget Strategy and Outlook Budget Paper No 1 2008-09 initiated major accounting policy reforms that improved the transparency, reliability and understanding of the government’s financial statements. The government decided that the Budget statements will continue to be based on the Australian Bureau of Statistics (ABS) Government Finance Statistics (GFS) except where Australian Accounting Standards (AAS) provide a better conceptual treatment for specific items. Departures will be limited to complying with either ABS GFS or AAS.

The Australian Government monthly financial statements for 2008-09 have been re-designed to provide information consistent with Budget papers as required under section 54 of the Financial Management and Accountability Act 1997.

Care needs to be taken when comparing monthly or cumulative data across years and to full year estimates. Revenues and expenses 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 underlying cash balance includes cash from operations and net cash provided by investing activities in non-financial assets but excludes the cash earnings for the Future Fund.

The underlying cash balance for the year to 30 April 2009 was a deficit of $16,496 million. The difference to the pro-rata Budget estimate of the underlying cash deficit of $26,762 million primarily reflects:

higher taxation receipts; and
the timing of the one-off payments announced in the Economic Security Strategy and Nation Building and Jobs Plan packages.

Fiscal Balance

The fiscal balance for the year to 30 April 2009 was a deficit of $9,139 million. The pro rata Budget estimate of the fiscal balance for 2008-09 is a deficit of $27,375 million.

FINANCIAL OUTCOMES

Revenues and Expenses

Expenses are $12,105 million lower and revenue is $4,299 million higher when compared with the pro rata Budget estimate for 2008-09.

Assets and Liabilities

The net worth balance of the General Government sector is a positive net asset position of $52,996 million at 30 April 2009.

Lindsay Tanner MP Minister for Finance and Deregulation 5 June 2009	I J Watt Secretary to the Department of Finance and Deregulation 5 June 2009
Contact: Lindsay Tanner MP’s Office: Nardia Dazkiw - (02) 6277 7400 Department of Finance and Deregulation: Davina Cassell - (02) 6215 3557

Australian Government General Government Sector – INCOME STATEMENT

	ACTUAL 2008-2009 April $m	ACTUAL 2008-2009 YTD April $m	BUDGET ESTIMATE* 2008-2009 FULL YEAR $m
Revenue
Taxation revenue	34,109	233,630	275,751
Sales of goods and services	637	5,178	6,373
Interest income	251	4,452	5,454
Dividend income	134	3,086	3,194
Other	391	4,569	5,166
Total revenue	35,522	250,915	295,939
Expenses
Gross operating expenses
Wages and salaries(a)	1,301	12,794	7
Superannuation	169	2,177	2,945
Depreciation and amortisation	554	4,458	5,520
Payment for supply of goods and services	5,318	45,208	57,925
Other operating expenses	466	3,902	4,694
Total gross operating expenses	7,807	68,539	86,774
Superannuation interest expense	598	5,320	6,432
Interest expenses	464	4,236	5,358
Current transfers
Current grants	5,606	72,851	94,804
Subsidy expenses	634	6,682	8,088
Personal benefits	12,803	91,391	111,556
Total current transfers	19,043	170,925	214,448
Capital transfers
Mutually agreed write-downs	118	1,207	1,717
Other capital grants	2,472	8,038	9,712
Total capital transfers	2,590	9,244	11,430
Total expenses	30,502	258,264	324,443
Net operating balance	5,020	-7,349	-28,504
Other economic flows
Revaluation of equity (b)	292	-6,339	-8,490
Net write-downs of assets (including bad and doubtful debts)	-520	-3,362	-4,089
Assets recognised for the first time	208	561	316
Actuarial revaluations	0	-1	-1,866
Net foreign exchange gains	863	-518	-143
Net swap interest received	19	-46	-25
Market valuation of debt	234	-3,258	-3,245
Other economic revaluations(c)	1,166	2,145	-112
Total other economic flows	2,262	-10,819	-17,653
Comprehensive result -
Total change in net worth	7,282	-18,168	-46,157
Net operating balance	5,020	-7,349	-28,504
Net acquisition of non-financial assets
Purchases of non-financial assets	768	6,134	9,910
less Sales of non-financial assets	28	266	516
less Depreciation	554	4,458	5,520
plus Change in inventories	-84	222	417
plus Other movements in non-financial assets	14	159	56
Total net acquisition of non-financial assets	115	1,790	4,347
Fiscal balance (Net lending/borrowing)(d)	4,905	-9,139	-32,851

*As published in the 2009-10 Budget.
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses.
(b) Revaluations of equity reflects changes in the market valuation of investments. This line also reflects any equity revaluations at the point of disposal or sale
(c) Largely reflects other revaluation of assets and liabilities.
(d) The term fiscal balance is not used by the ABS.

Australian Government General Government Sector - BALANCE SHEET

	ACTUAL as at 30 April 2009 $m	BUDGET ESTIMATE* as at 30 June 2009 $m
Assets
Financial assets
Cash and deposits	472	1,538
Advances paid	21,940	21,948
Investments, loans and placements	95,480	102,506
Other receivables	35,302	32,708
Equity investments
Investments in other public sector entities	20,108	18,870
Equity accounted investments	223	224
Investments - shares	23,556	22,856
Total financial assets	197,081	200,650
Non-financial assets
Land	8,205	7,994
Buildings	18,637	18,967
Plant, equipment and infrastructure	44,147	44,465
Inventories	6,160	6,523
Intangibles	2,534	3,101
Investment property	224	168
Biological assets	31	29
Heritage and cultural assets	404	8,286
Assets held for sale	8,397	552
Other non-financial assets	3,461	3,003
Total non-financial assets	92,199	93,088
Total assets	289,280	293,738
Liabilities
Interest bearing liabilities
Deposits held	284	339
Government securities	88,328	111,867
Loans	6,703	8,170
Other borrowing	875	919
Total interest bearing liabilities	96,189	121,296
Provisions and payables
Superannuation liability	103,218	118,401
Other employee liabilities	8,963	9,419
Suppliers payable	2,591	3,658
Personal benefits payable	9,313	14,222
Subsidies payable	1,480	1,586
Grants payable	4,696	6,746
Other provisions and payables	9,834	7,653
Total provisions and payables	140,095	161,686
Total liabilities	236,284	282,981
Net worth(a)	52,996	10,756
Net financial worth(b)	-39,203	-82,331
Net financial liabilities(c)	59,311	101,201
Net debt(d)(e)	-21,702	-4,697

*As published in the 2009-10 Budget.
(a) Net worth is calculated as total assets minus total liabilities.
(b) Net financial worth equals total financial assets minus total liabilities. That is, it excludes non-financial assets.
(c) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(d) Net debt equals the sum of deposits held, advances received, government securities loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.
(e) The net debt estimates include the expected impact of the Future Fund rebalancing its portfolio allocation by increasing its holding of equities, which are not included in the calculation of net debt.

Australian Government General Government Sector - CASH FLOW STATEMENT

	ACTUAL 2008-2009 April $m	ACTUAL 2008-2009 YTD April $m	BUDGET ESTIMATE* 2008-2009 FULL YEAR $m
Cash receipts from operating activities
Taxes received	33,095	227,915	269,377
Receipts from sales of goods and services	591	5,427	6,356
Interest receipts	196	4,051	5,014
Dividends and income tax equivalents	440	3,061	3,152
Other receipts	345	4,720	5,328
Total operating receipts	34,665	245,173	289,228
Cash payments for operating activities
Payments for employees	-2,131	-17,501	-21,412
Payments for goods and services	-3,850	-43,779	-56,813
Grants and subsidies paid	-8,445	-86,559	-111,812
Interest paid	-275	-3,023	-4,078
Personal benefit payments	-14,295	-94,758	-110,393
Other payments	-555	-5,599	-3,810
Total operating payments	-29,552	-251,218	-308,319
Net cash flows from operating activities	5,113	-6,044	-19,090
Cash flows from investments in non-financial assets
Sales of non-financial assets	28	306	555
Purchases of non-financial assets	-767	-6,905	-9,469
Net cash flows from investments in non-financial assets	-739	-6,599	-8,914
Net cash flows from investments in financial assets for policy purposes	-4,658	-5,943	-7,428
Cash flows from investments in financial assets for liquidity purposes
Increase in investments	-8,854	-7,461	-12,483
Net cash flows from investments in financial assets for liquidity purposes
Cash flows from financing activities	-8,854	-7,461	-12,483
Borrowing (net)	8,331	25,158	48,124
Other financing (net)	-176	-454	-710
Net cash flows from financing activities	8,155	24,704	47,414
Net increase/(decrease) in cash held	-982	-1,344	-501
Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-))	4,374	-12,644	-28,004
Finance leases and similar arrangements (b)	-19	-495	-507
GFS cash surplus(+)/deficit(-)	4,356	-13,139	-28,511
less Future Fund earnings	444	3,357	3,603
Equals underlying cash balance (c)	3,911	-16,496	-32,114
plus net cash flows from investments in financial assets for policy purposes	-4,658	-5,943	-7,428
plus Future Fund earnings	444	3,357	3,603
Equals headline cash balance	-302	-19,082	-35,939

*As published in the 2009-10 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) The acquisition of assets under finance leases decreases the underlying cash balance.The disposal of assets previously held under finance leases increases the underlying cash.
(c) The term underlying cash balance is not used by the ABS.

Australian Government General Government Sector - EXPENSES BY FUNCTION

	ACTUAL 2008-2009 April $m	ACTUAL 2008-2009 YTD April $m	BUDGET ESTIMATE* 2008-2009 FULL YEAR $m
Expenses by Purpose
General Public Services	1,803	15,272	17,910
Defence	1,625	14,951	18,745
Public Order and Safety	14	2,020	3,687
Education	1,133	15,731	21,502
Health	4,286	39,055	49,373
Social Security and Welfare	14,165	100,888	124,915
Housing and Community Amenities	306	3,599	4,410
Recreation and Culture	10	1,305	2,997
Fuel and Energy	454	4,513	6,280
Agriculture, Forestry and Fishing	116	1,538	3,267
Mining and Mineral Resources (other than fuels); Manufacturing and Construction	71	1,296	1,921
Transport and Communication	616	3,799	6,989
Other Economic Affairs	518	4,859	7,037
Other Purposes
Public Debt Interest	139	2,343	3,938
Nominal Superannuation Interest	598	5,320	6,432
General Purpose Inter-Government Transactions	4,648	41,695	45,433
Natural Disaster Relief	0	59	398
Contingency Reserve (a)	0	20	-793
Total Expenses	30,502	258,264	324,443

*As published in the 2009-10 Budget.
(a) Asset sale related expenses are 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 ABS 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 based on the same conceptual framework as the Budget i.e. the Australian Government’s interpretation of AASB 1049.

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 Business Activity 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 Income Statement.

Note 1: Income Tax

	ACTUAL 2008-2009 April $m	ACTUAL 2008-2009 YTD April $m	BUDGET ESTIMATE* 2008-2009 FULL YEAR $m
INDIVIDUALS AND OTHER WITHHOLDING TAX
Gross income tax withholding	10,082	98,443	117,680
Gross other individuals	5,592	24,400	31,210
Less refunds	1,214	21,394	23,200
Total individuals and other withholding tax	14,459	101,449	125,690
OTHER SOURCES
Companies	9,686	52,729	57,950
Superannuation funds (a)	1,141	8,796	9,160
Petroleum Resource Rent Tax	220	1,939	1,600
Fringe Benefits tax (b)	892	3,243	3,470
Total income tax from other sources	11,939	66,708	72,180
Total income tax	26,398	168,157	197,870

*As published in the 2009-10 Budget.
(a) Includes superannuation contributions surcharge.
(b) Negative collections indicate refunds exceed collections.

Note 2: Indirect Tax

	ACTUAL 2008-2009 April $m	ACTUAL 2008-2009 YTD April $m	BUDGET ESTIMATE* 2008-2009 FULL YEAR $m
Excise duty	2,055	20,276	24,520
Customs duty	487	5,293	6440
Goods and services tax	4,797	36,915	43,130
Other indirect tax	372	2,988	3,791
Total indirect tax revenue	7,712	65,472	77,881

*As published in the 2009-10 Budget.

NOTE:

Style Conventions

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)

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.
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. 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.