2012-13 Government Mid-year Financial Projections Statement

Financial StrategyFinancial TargetsNet Worth: Maintain or Increase the Real Net Worth of the Total PublicSectorThis target is expected to be met in 2012-13 and across the forward estimates period.Net worth is the difference between total assets and total liabilities. This target seeks tomaintain the real (i.e. inflation-adjusted) value of the public sector’s net worth over time.In nominal terms (i.e. excluding adjustments for projected inflation), net worth is forecastto increase by around $14 billion across the forward estimates period, rising from$111.5 billion at 30 June 2012 to an estimated $125.6 billion by 30 June 2016. This islower than net worth of $129.2 billion at 30 June 2016 projected at budget-time, reflectinga weaker operating outlook and downward valuations of land under roads at 30 June 2012(discussed in detail in the 2011-12 Annual Report on State Finances).The projected increase in net worth over the forward estimates period reflects the impactof an aggregate operating surplus outcome for the total public sector, and the forecastvalue of fixed assets (particularly land assets held across the whole-of-government, andproperty, plant and equipment held by public corporations).$ Billion (2012-13 dollars)130REAL NET WORTH AT 30 JUNETotal Public Sector2012-13 Budget 2012-13 Mid-year ReviewFigure 11201101009080702012 2013 2014 201547