2012-13 Government Mid-year Financial Projections Statement

More documents

Recommendations

Info

2012-13 Government Mid-year Financial Projections StatementOperating Result: Achieve an Operating Surplus for the GeneralGovernment SectorThis target is forecast to be met in 2012-13, and in 2014-15 and 2015-16. On currentprojections, the target is not met in 2013-14.Operating surpluses (i.e. the balance of revenue over recurrent expenditure on the generalgovernment sector’s day-to-day operating activities, excluding capital investment) are anindicator that current services are being paid for by current users. Operating surpluses areessentially the Government’s savings and therefore an important source of cash fundingfor infrastructure investment.The outlook for the general government sector operating balance across the forwardestimates period has weakened since budget. This reflects a weaker revenue outlook, inparticular lower royalty revenue and the impact of lower projected public corporationprofitability on dividend and tax equivalent revenue. As discussed in Chapter 1, forecastgeneral government revenue over the forward estimates period has been revised down bya total of $1,203 million since budget-time.The Government has responded to the weaker revenue outlook with a range of newsavings measures. Had these measures not been implemented, the operating balance in2012-13 would be an estimated $387 million deficit, rather than the $140 million surplusnow forecast (see Chapter 1: Financial Projections).$ MillionNET OPERATING BALANCEGeneral Government SectorFigure 21,7502012-13 Budget 2012-13 Mid-year Review1,250750250-2502012-13 2013-14 2014-15 2015-1648
Financial StrategyNet Debt Affordability: Maintain Net Interest Costs As A Share Of Revenue 1Below 4.5%This target is expected to be met in the current year and across the forward estimatesperiod.Net interest costs as a share of revenue are forecast to range between 2.1% in 2012-13 and2.7% by 2015-16, well below the Government’s 4.5% upper target limit.While total public sector net debt at 30 June 2016 is now forecast at $24.8 billion(up from $22.9 billion at the time of the budget), net interest costs as a share of revenueare now projected to be slightly lower relative to the budget forecasts (see chart below).This reflects lower interest rate assumptions across the forward estimates period, with theReserve Bank of Australia having reduced the official cash rate three times – by a total of75 basis points – since the 7 May 2012 cut-off date for the 2012-13 Budget.Percent6NET INTEREST COSTS AS A SHARE OF REVENUETotal Non-Financial Public Sector2012-13 Budget 2012-13 Mid-year ReviewFigure 354.5% upper limit4322.42.12.82.52.9 2.92.6 2.7102012-13 2013-14 2014-15 2015-161For the total non-financial public sector.49
Page 1:
2012‐13GovernmentMid‐year Finan
Page 4 and 5:
2012-13 Government Mid-year Financi
Page 7: ForewordThis Government Mid-year Fi
Page 10 and 11: 2012-13 Government Mid-year Financi
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160:
show all

2012-13 Government Mid-year Financial Projections Statement

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?