Australian Government Monthly Financial Statements January 2012

Media Release
Senator the Hon Penny Wong
Minister for Finance and Deregulation

03/12
09 March 2012

KEY POINTS

  • The underlying cash balance for the 2011-12 financial year to 31 January 2012 was a deficit of $30,068 million.
  • The fiscal balance for the 2011-12 financial year to 31 January 2012 was a deficit of $26,025 million.
AGGREGATES
ACTUAL
2011-2012
January
$m

ACTUAL
2011-2012
YTD January
$m
MYEFO
Profile
2011-2012
YTD January
$m
MYEFO ESTIMATE*
2011-2012
FULL YEAR
$m
Revenue  29,566 187,933 189,933 344,110
Expenses 30,564 212,916 215,706 371,747
Net operating balance  -998 -24,983 -25,773 -27,637
Net capital investment  210 1,042 898 4,813
Fiscal balance  -1,208 -26,025 -26,672 -32,450
Underlying Cash Receipts 28,067 180,906 183,840 332,977
Underlying Cash Payments 30,692 210,973 212,776 370,090
Underlying cash balance(a) -2,625 -30,068 -28,936 -37,113
Headline cash balance  -2,365 -32,627 -31,545 -43,334
Total assets 322,963 328,461
Total liabilities 460,887 450,789
Net worth(b)   -137,923   -122,328
Net debt(c)   131,294   132,552

*As published in the 2011-12 MYEFO.
(a) Excludes Future Fund earnings.
(b) Net worth is calculated as total assets minus total liabilities.
(c) Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Care needs to be taken when comparing monthly or cumulative data across years and to full year estimates as revenues and expenses vary from month to month.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance includes cash from operations and net cash provided by investing activities in non-financial assets but excludes the cash earnings for the Future Fund.

The underlying cash balance for the year to 31 January 2012 was a deficit of $30,068 million, compared to the Mid Year Economic Fiscal Outlook (MYEFO) profile of the underlying cash balance deficit of $28,936 million. The difference of $1,132 million primarily relates to lower than anticipated taxation receipts, higher than expected personal benefit payments, offset by lower than anticipated grant payments.

Fiscal Balance

The fiscal balance for the year to 31 January 2012 was a deficit of $26,025 million. The MYEFO profile of the fiscal balance for 2011-12 is a deficit of $26,672 million. The difference of $647 million primarily relates to lower revenue of $1,999 million, lower expenses of $2,790 million and higher net acquisition of non‑financial assets of $144 million.

FINANCIAL OUTCOMES

Revenues and Expenses

Total revenue was $1,999 million lower than the MYEFO profile estimate for 2011-12 due to lower taxation revenue.

Total expenses were $2,790 million lower when compared with the MYEFO profile estimate for 2011-12 due to lower than anticipated grants expense, wages and salaries expense and goods and services expense.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $137,923 million at 31 January 2012.

Senator the Hon Penny Wong
Minister for Finance and Deregulation
09 March 2012

David Tune
Secretary to the Department of Finance and Deregulation
09 March 2012

Contact: Senator Penny Wong's Office:
Department of Finance and Deregulation:
Evelyn Ek  0412 887 853
Lauren Alcantara (02) 6215 3557


Australian Government General Government Sector – INCOME STATEMENT

 
ACTUAL
2011-2012
January
$m

ACTUAL
2011-2012
YTD January
$m
MYEFO ESTIMATE*
2011-2012
FULL YEAR
$m
Revenue  
Taxation revenue 27,989 176,642 323,631
Sales of goods and services 666 4,553 8,050
Interest income 347 2,598 5,190
Dividend income 38 847 1,652
Other 526 3,293 5,587
Total revenue 29,566 187,933 344,110
Expenses  
Gross operating expenses  
Wages and salaries(a) 1,393 10,407 19,374
Superannuation 431 2,521 4,177
Depreciation and amortisation 526 3,443 5,733
Supply of goods and services 4,577 39,753 70,425
Other operating expenses(a) 434 3,015 4,624
Total gross operating expenses 7,363 59,140 104,333
Superannuation interest expense 617 4,286 7,351
Interest expenses 1,079 7,462 12,983
Current transfers  
Current grants 10,548 62,205 111,799
Subsidy expenses 912 5,630 9,782
Personal benefits 8,604 65,678 110,787
Total current transfers 20,064 133,513 232,368
Capital transfers  
Mutually agreed write-downs 152 1,202 2,267
Other capital grants 1,290 7,312 12,445
Total capital transfers 1,442 8,514 14,712
Total expenses 30,564 212,916 371,747
Net operating balance -998 -24,983 -27,637
Other economic flows  
Gain/loss on equity and on sale of assets(b) 208 -2,822 -1,875
Net write-downs of assets(including bad and doubtful debts) -647 -2,295 -5,376
Assets recognised for the first time 26 209 517
Actuarial revaluations 0 0 -819
Net foreign exchange gains 988 768 -527
Net swap interest received 93 -57 45
Market valuation of debt 350 -13,183 -7,628
Other economic revaluations(c)  33 -174 -84
Total other economic flows 1,052 -17,554 -15,747
Comprehensive result - Total change in net worth 54 -42,537 -43,383
Net operating balance -998 -24,983 -27,637
Net acquisition of non-financial assets  
Purchases of non-financial assets 699 4,324 10,013
less Sales of non-financial assets 11 139 612
less Depreciation 526 3,443 5,733
plus Change in inventories 38 198 638
plus Other movements in non-financial assets 10 103 508
Total net acquisition of non-financial assets 210 1,042 4,813
Fiscal balance (Net lending/borrowing)(d) -1,208 -26,025 -32,450

*As published in the 2011-12 MYEFO.
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(c) Largely reflects other revaluation of assets and liabilities.
(d) The term fiscal balance is not used by the ABS.


Australian Government General Government Sector - BALANCE SHEET


ACTUAL
as at
31 January 2012
$m
MYEFO ESTIMATE*
as at
30 June 2012
$m
Assets  
Financial assets  
Cash and deposits 2,183 2,484
Advances paid 27,845 29,790
Investments, loans and placements 96,628 97,990
Other receivables 39,142 37,011
Equity investments  
Investments in other public sector entities 22,349 21,858
Equity accounted investments 311 318
Investments - shares 27,807 29,110
Total financial assets 216,265 218,560
Non-financial assets  
Land 8,486 8,661
Buildings 22,643 23,094
Plant, equipment and infrastructure  50,901 52,696
Inventories 7,019 7,031
Intangibles 4,760 5,224
Investment property 575 316
Biological assets 98 36
Heritage and cultural assets 9,460 9,498
Assets held for sale 146 148
Other non-financial assets 2,611 3,196
Total non-financial assets 106,698 109,901
Total assets 322,963 328,461
Liabilities  
Interest bearing liabilities  
Deposits held 218 209
Government securities 248,131 253,455
Loans 8,807 8,357
Other borrowing 794 796
Total interest bearing liabilities 257,950 262,816
Provisions and payables  
Superannuation liability(a) 148,052 133,487
Other employee liabilities  11,409 11,539
Suppliers payable 3,831 4,478
Personal benefits provisions and payable 12,445 13,165
Subsidies provisions and payable 2,190 2,292
Grants provisions and payable 12,404 10,618
Other provisions and payables 12,606 12,394
Total provisions and payables 202,936 187,973
Total liabilities 460,887 450,789
Net worth(b) -137,923 -122,328
Net financial worth(c) -244,621 -232,229
Net financial liabilities(d)  266,970 254,087
Net debt(e) 131,294 132,552

*As published in the 2011-12 MYEFO.
(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long-term government bond rate were used. Consistent with Australian Accounting Standards, the long-term government bond rate as at 30 June is used to calculate the superannuation liability for the purpose of actuals reporting.
(b) Net worth is calculated as total assets minus total liabilities.
(c) Net financial worth equals total financial assets minus total liabilities.
(d) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(e) Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Australian Government General Government Sector - CASH FLOW STATEMENT

ACTUAL
2011-2012
January

$m
ACTUAL
2011-2012
YTD January

$m
MYEFO
ESTIMATE*
2011-2012
FULL YEAR

$m
Cash receipts from operating activities      
Taxes received 26,768 171,122 315,299
Receipts from sales of goods and services 543 4,131 7,970
Interest receipts 36 2,110 4,902
Dividends and income tax equivalents 42 1,293 2,233
Other receipts 624 3,469 5,417
Total operating receipts 28,012 182,125 335,820
Cash payments for operating activities  
Payments for employees -1,775 -14,293 -26,171
Payments for goods and services -4,582 -42,172 -71,140
Grants and subsidies paid -13,943 -75,396 -137,057
Interest paid -527 -5,539 -10,775
Personal benefit payments -8,655 -66,060 -110,299
Other payments  -522 -2,670 -4,522
Total operating payments -30,004 -206,130 -359,963
Net cash flows from operating activities -1,992 -24,005 -24,143
Cash flows from investments in non-financial assets  
Sales of non-financial assets 11 139 612
Purchases of non-financial assets -688 -4,841 -10,009
Net cash flows from investments in
  non-financial assets
-677 -4,703 -9,397
Net cash flows from investments in
   financial assets for policy purposes
304 -3,918 -9,677
Cash flows from investments in
   financial assets for liquidity purposes
 
Increase in investments 2,149 515 1,475
Net cash flows from investments in
   financial assets for liquidity purposes
2,149 515 1,475
Cash flows from financing activities  
Borrowing (net) -1,779 32,331 43,688
Other financing (net) -101 -515 -1,939
Net cash flows from financing activities -1,880 31,816 41,749
Net increase/(decrease) in cash held -2,095 -294 7
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
-2,669 -28,708 -33,540
Finance leases and similar arrangements(b) 0 -2 -117
GFS cash surplus(+)/deficit(-) -2,669 -28,710 -33,658
less Future Fund earnings -44 1,358 3,455
Equals underlying cash balance (c) -2,625 -30,068 -37,113
 plus net cash flows from investments in
  financial assets for policy purposes
304 -3,918 -9,677
plus Future fund earnings -44 1,358 3,455
Equals headline cash balance -2,365 -32,627 -43,334

*As published in the 2011-12 MYEFO.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) The acquisition of assets under finance leases decreases the underlying cash balance.The disposal of assets previously held under finance leases increases the underlying cash.
(c) The term underlying cash balance is not used by the ABS.

Australian Government General Government Sector - EXPENSES BY FUNCTION

ACTUAL
2011-2012
January

$m
ACTUAL
2011-2012
YTD January

$m
MYEFO
ESTIMATE*
2011-2012
FULL YEAR

$m
Expenses by function      
General public services 1,606 12,305 21,849
Defence 1,568 11,474 21,050
Public order and safety 299 2,112 4,012
Education  4,622 19,430 30,016
Health  4,606 33,644 60,944
Social security and welfare  9,457 74,388 124,857
Housing and community amenities 329 2,377 5,871
Recreation and culture 309 1,805 3,375
Fuel and energy 534 3,450 7,021
Agriculture, forestry and fishing 217 1,544 3,569
Mining, manufacturing and construction 322 1,339 2,144
Transport and communication 364 3,232 8,324
Other economic affairs 650 5,323 9,603
Other purposes  
Public debt interest 997 6,668 11,623
Nominal superannuation interest 617 4,286 7,351
General purpose inter-government transactions 4,067 29,534 50,479
Natural disaster relief  0 3 512
Contingency reserve 0 0 -853
Total expenses 30,564 212,916 371,747

*As published in the 2011-12 MYEFO.

NOTES:

The Australian Government monthly financial statements have been prepared on a basis consistent with the Budget as required under section 54 of the Financial Management and Accountability Act 1997. The statements are based on the Australian Bureau of Statistics (ABS) Government Finance Statistics (GFS) except where Australian Accounting Standards (AAS) provide a better conceptual treatment for specific items. Departures are limited to complying with either ABS GFS or AAS.

In response to the report titled ‘Review of Operation Sunlight: Overhauling Budgetary Transparency’, the Australian Government has improved the transparency and accountability of the Monthly Financial Statements by reporting against a profile of expected revenue and expenses. This allows for a more accurate commentary and account for seasonality or patterns of revenue and expenses.

The Government is committed to releasing the Monthly Financial Statements in a timely fashion and will endeavour to do so in accordance with International Monetary Fund (IMF) Special Data Dissemination Standards. Under these standards the timeframe for releasing the Monthly Financial Statements is by the end of the following month. The exception is the July Monthly Financial Statements, for which the IMF has given Australia special dispensation to release before 30 September.

While total tax collections are known with certainty at the end of each month, the distribution across the relevant heads of revenue cannot be finalised until all Business Activity Statements are received and processed. The outcomes for some revenue items provided in this statement are thus estimates, in accordance with the best judgement of the Taxation Commissioner, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in the Income Statement.

Note 1: Income Tax

ACTUAL
2011-2012
January

$m
ACTUAL
2011-2012
YTD January

$m
MYEFO
ESTIMATE*
2011-2012
FULL YEAR

$m
Individuals and other withholding taxes      
Gross income tax withholding  9,848 80,919 143,520
Gross other individuals 902 14,450 32,910
less refunds 1,035 20,379 26,600
Total individuals and other withholding taxation 9,715 74,990 149,830
Company tax  11,158 43,400 71,800
Superannuation funds 445 5,607 8,990
Resource rent tax  214 1,209 2,030
Fringe benefits tax 664 2,356 3,530
Total income taxation revenue 22,195 127,561 236,180

*As published in the 2011-12 MYEFO.

Note 2: Indirect Tax

ACTUAL
2011-2012
January

$m
ACTUAL
2011-2012
YTD January

$m
MYEFO
ESTIMATE*
2011-2012
FULL YEAR

$m
Goods and services tax 2,137 26,879 49,750
Wine equalisation tax 83 418 750
Luxury car tax 34 251 480
Excise duty 2,512 15,647 26,960
Customs duty 689 4,221 6,740
Other indirect tax 339 1,665 2,771
Total indirect taxation revenue 5,794 49,081 87,451

*As published in the 2011-12 MYEFO.

NOTE:

Style Conventions

  1. Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding.

International Monetary Fund (IMF) Special Data Dissemination Standards (SDDS)

  1. In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations, which is contained in the Australian Government Financial Statements, is given on the IMF's Data Dissemination Bulletin Board at http//dsbb.imf.org [External Site].
  2. In accordance with the IMF SDDS, the approximate date of release of the data on debt guaranteed by the Australian Government (central government), is given on the IMF's Data Dissemination Advance Release Calendar http://dsbb.imf.org [External Site]. Monthly and quarterly data on debt guaranteed by the Australian Government (central government) that meet the coverage and timeliness requirements of the SDDS are published on the AOFM website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32 [External Site].