2012-13 Government Mid-year Financial Projections Statement

2012-13 Government Mid-year Financial Projections StatementExpense Growth: Ensure that Real Per Capita Own-Purpose Expenses 2 forthe General Government Sector do not IncreaseThis target is expected to be met in 2012-13 and across each of the outyears.The target allows for general government expense growth up to the combined growth inpopulation and wages (as measured by the Wage Price Index), and excludesCommonwealth grants that are passed ‘through’ the State. Based on forecast growth inthese parameters, the target allows for nominal expense growth of up to 7.3% in 2012-13and an average of 6.6% across the outyears.General government expense growth in 2012-13 is forecast to be 2.5% in nominal terms,which is well within target. This is down from an estimated 4.2% increase at the time ofthe budget, reflecting the impact of:the post-budget corrective measures implemented in 2012-13 (as discussed inChapter 1); andthe ‘base’ effect of a higher than expected outcome in 2011-12 expenses (detailed inthe 2011-12 Annual Report on State Finances).Across the outyears (2013-14 to 2015-16), expense growth is forecast to average 4.3%per annum, compared to the average 6.6% growth permitted under this target.$ (2012-13 dollars)11,000REAL PER CAPITA OWN-PURPOSE EXPENSESGeneral Government SectorFigure 42012-13 Budget 2012-13 Mid-year Review10,50010,0009,5009,0008,5008,0002011-12 2012-13 2013-14 2014-15 2015-162Own-purpose expenses exclude Commonwealth grants on-passed through the State to third parties such as non-governmentschools and local governments.50