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Garnaut Fitzgerald Review of Commonwealth-State Funding

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CHAPTER 8: Federal Policy Effects<br />

on Interstate Distribution <strong>of</strong> Incomes and Economic Activity<br />

Tables 8.3 and 8.4 allocate the impacts <strong>of</strong> <strong>Commonwealth</strong> expenditures by <strong>State</strong><br />

(approximately, and excluding GST-based grants), according to a welfare transfer and a<br />

production effect basis respectively. This allocation reflects the assumptions detailed<br />

later in this chapter.<br />

Against the equal per capita benchmark, there are very marked variations in<br />

expenditures across <strong>State</strong>s for both transfers <strong>of</strong> individual welfare and effects on<br />

production by <strong>State</strong>.<br />

TABLE 8.3: Individual welfare transfers from <strong>Commonwealth</strong> expenditures, 2000–01<br />

($ per capita)<br />

NSW VIC QLD WA SA TAS ACT NT<br />

Expenditure distributions<br />

Defence 730 730 730 730 730 730 730 730<br />

Other final consumption 1 881 2 026 1 560 1 563 1 844 2 003 1 834 2 696<br />

and capital expenditures<br />

Grants to other<br />

governments (excluding<br />

GST)<br />

1 314 1 267 1 308 1 528 1 426 1 524 1 805 2 038<br />

Subsidies (a) 63 63 63 63 63 63 63 63<br />

Personal benefit<br />

payments and grants to<br />

non-pr<strong>of</strong>it organisations<br />

3 368 3 315 3 274 3 092 3 704 3 971 2 847 2 306<br />

Total 7 356 7 401 6 934 6 976 7 766 8 291 7 279 7 833<br />

Equal per capita<br />

benchmark<br />

7 311 7 311 7 311 7 311 7 311 7 311 7 311 7 311<br />

Transfer 46 91 -375 -333 457 981 -30 524<br />

(a) Excludes fuel rebates<br />

TABLE 8.4: Production effects from <strong>Commonwealth</strong> expenditures, 2000–01<br />

($ per capita)<br />

NSW VIC QLD WA SA TAS ACT NT<br />

Expenditure distributions<br />

Defence 712 526 846 597 537 338 3 059 4 128<br />

Other final consumption 1 486 1 630 1 164 1 168 1 449 1 608 25 822 2 301<br />

and capital expenditures<br />

Grants to other<br />

governments (excluding<br />

GST)<br />

1 314 1 267 1 308 1 528 1 426 1 524 1 805 2 038<br />

Subsidies (a) 44 43 70 202 19 60 0 178<br />

Personal benefit<br />

payments and grants to<br />

non-pr<strong>of</strong>it organisations<br />

3 275 3 754 3 021 2 985 3 778 3 579 1 964 2 099<br />

Total 6 830 7 220 6 409 6 480 7 209 7 109 32 650 10 744<br />

Equal per capita<br />

benchmark<br />

7 311 7 311 7 311 7 311 7 311 7 311 7 311 7 311<br />

Transfer -479 -89 -900 -829 -100 -200 25 341 3 435<br />

(a) Excludes fuel rebates<br />

FINAL REPORT [112]

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