Statement of Receipts and Payments of the Consolidated Fund and ...

Financial commitments represent various financial exposures or obligations. They do not
meet the tests for inclusion as actual liabilities or contingent liabilities, for example because
benefits may not have been received or services not delivered. However they are provided in the
interests of disclosing a more complete picture of the State's financial position.
The Finance Statement does not at this stage present a full listing and totalling of all
liabilities although as information systems improve, it is intended to move to such an
arrangement. At this date it is not possible to present reliable figures as at 30 June 1992 for a
number of major components of total liabilities, e.g. the unfunded liabilities of a number of the
public sector superannuation schemes. This information, is however presented in Victoria's
I*ublic Sector Balance Sheet which is prepared at a later date.
Consistent with the recommendations of the Independent Review of Victoria's Public
Sector Finances (the Nicholl's Review), that as far as possible there be an agreed basis for
reporting public sector debt, it is intended to publish an information paper on State liabilities to
fully clarify the concepts of debt and other liabilities adopted by the Victorian Government. This
will include a statement of total debt and other liabilities updated to 30 June 1992.
2. VICTORIA'S PUBLIC BALANCE SHEET
A consolidated statement of assets and liabilities for the Victorian public sector was
released for the first time in June 1991 as Victoria's Public Balance Sheet, Treasury Information
Paper No. 1. Estimates were provided for balances at 30 June 1989 and 1990. The accounting
policies and methodology used in developing the information paper were reviewed by the
accounting firm Price Waterhouse and their comments were included.
Development of these estimates was largely made possible by the significant measures
taken during the 1980s to improve the disclosure of financial information, beginning with the
Annual Reporting Act 1983 and continuing with the publication of Victorian Public Sector Debt,
Department of Management and Budget Information Paper No. 2 and the change in 1988 to
presentation of the Budget in national accounting format.
The Public Balance Sheet estimates have been revised and updated to 30 June 1991 and
will be further updated to 30 June 1992 when audited figures for 1991-92 are available later this
year.
In summary, Victoria's net worth - its assets less its liabilities - stood at an estimated $34.7
billion as at 30 June 1991. This is $5.6 billion lower than the previous year, and results from
downward revaluations of fixed assets and land, recognition in the Balance Sheet of the net
deficiency of Tricontinental Group, an increase in the level of unfunded superannuation
liabilities, and higher public debt to finance the 1990-91 Budget deficit.
178