Australian Government Monthly Financial Statements May 2012

Date of Publication: 
October 28, 2013

Senator the Hon Penny Wong
Minister for Finance and Deregulation

07/2012
27 July 2012

KEY POINTS

  • The underlying cash balance for the 2011-12 financial year to 31 May 2012 was a deficit of $29,356 million.
  • The fiscal balance for the 2011-12 financial year to 31 May 2012 was a deficit of $18,935 million.
AGGREGATES
ACTUAL
2011-2012
May
$m

ACTUAL
2011-2012
YTD May
$m
Revised Budget
Profile
2011-2012
YTD May
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Revenue  31,723 315,860 315,232 336,418
Expenses 28,625 331,785 332,527 373,671
Net operating balance  3,098 -15,926 -17,295 -37,253
Net capital investment  1,480 3,010 2,207 4,749
Fiscal balance  1,618 -18,935 -19,502 -42,002
Underlying Cash Receipts 29,746 301,773 301,851 326,936
Underlying Cash Payments 31,356 331,129 331,873 371,337
Underlying cash balance(a) -1,611 -29,356 -30,021 -44,402
Headline cash balance  -1,858 -33,090 -33,565 -48,406
Total assets 340,329 325,811
Total liabilities 479,388 467,580
Net worth(b)   -139,060   -141,769
Net debt(c)   137,248   142,493

*As published in the 2012-13 Budget.
(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 May 2012 was a deficit of $29,356 million, compared to the Revised Budget profile of the underlying cash balance deficit of $30,021 million. The difference primarily relates to lower grants and subsidies paid and higher interest receipts.

Fiscal Balance

The fiscal balance for the year to 31 May 2012 was a deficit of $18,935 million. The Revised Budget profile of the fiscal balance for 2011-12 is a deficit of $19,502 million. The difference of $566 million primarily relates to higher revenue and lower expenses, partially offset by higher net acquisition of non‑financial assets.

FINANCIAL OUTCOMES

Revenues and Expenses

Total revenue was $628 million higher than the Revised Budget profile estimate for 2011-12 primarily due to higher taxation revenue.

Total expenses were $742 million lower when compared with the Revised Budget profile estimate for
2011-12 primarily due to lower subsidies, personal benefits and grants expenditure, partially offset by higher gross operating expenses.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $139,060 million at 31 May 2012.


Senator Penny Wong
Minister for Finance and Deregulation
27 July 2012

David Tune
Secretary to the Department of Finance and Deregulation
27 July 2012

Contact: Senator Penny Wong's Office:
Department of Finance and Deregulation:
Evelyn Ek - (02) 6277 7400
Amelia Huang - (02) 6215 3138


Australian Government General Government Sector – INCOME STATEMENT

 
ACTUAL
2011-2012
May
$m

ACTUAL
2011-2012
YTD May
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Revenue  
Taxation revenue 29,875 297,492 316,454
Sales of goods and services 752 7,540 8,256
Interest income 393 4,087 4,703
Dividend income 171 1,561 1,669
Other 532 5,179 5,336
Total revenue 31,723 315,860 336,418
Expenses  
Gross operating expenses  
Wages and salaries(a) 1,640 16,666 18,814
Superannuation 471 4,144 4,316
Depreciation and amortisation 240 5,240 6,003
Supply of goods and services 7,097 64,633 69,984
Other operating expenses(a) 770 5,001 5,750
Total gross operating expenses 10,218 95,685 104,867
Superannuation interest expense 613 6,738 7,358
Interest expenses 1,122 12,016 13,009
Current transfers  
Current grants 6,067 94,367 110,686
Subsidy expenses 813 8,811 10,121
Personal benefits 8,932 101,231 112,450
Total current transfers 15,813 204,409 233,258
Capital transfers  
Mutually agreed write-downs 139 1,830 2,139
Other capital grants 721 11,108 13,040
Total capital transfers 860 12,938 15,179
Total expenses 28,625 331,785 373,671
Net operating balance 3,098 -15,926 -37,253
Other economic flows  
Gain/loss on equity and on sale of assets(b) 1,316 1,549 -308
Net write-downs of assets(including bad and doubtful debts) -832 -4,322 -4,822
Assets recognised for the first time 130 470 507
Actuarial revaluations 0 0 -6,087
Net foreign exchange gains -1,804 -1,704 70
Net swap interest received -39 42 67
Market valuation of debt -8,756 -22,999 -15,396
Other economic revaluations(c)  -87 -784 399
Total other economic flows -10,073 -27,748 -25,571
Comprehensive result - Total change in net worth -6,974 -43,673 -62,823
Net operating balance 3,098 -15,926 -37,253
Net acquisition of non-financial assets  
Purchases of non-financial assets 1,470 7,745 10,304
less Sales of non-financial assets 21 217 589
less Depreciation 240 5,240 6,003
plus Change in inventories 279 655 604
plus Other movements in non-financial assets -8 67 433
Total net acquisition of non-financial assets 1,480 3,010 4,749
Fiscal balance (Net lending/borrowing)(d) 1,618 -18,935 -42,002

*As published in the 2012-13 Budget.
(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 May 2012
$m
REVISED BUDGET
ESTIMATE*
as at
30 June 2012
$m
Assets  
Financial assets  
Cash and deposits 2,406 2,470
Advances paid 28,885 29,711
Investments, loans and placements 108,642 99,962
Other receivables 43,219 36,031
Equity investments  
Investments in other public sector entities 22,348 20,602
Equity accounted investments 309 317
Investments - shares 27,191 27,190
Total financial assets 233,000 216,282
Non-financial assets  
Land 8,324 8,609
Buildings 22,354 22,947
Plant, equipment and infrastructure  51,404 52,363
Inventories 7,379 7,069
Intangibles 5,085 5,347
Investment property 597 314
Biological assets 96 36
Heritage and cultural assets 9,526 9,567
Assets held for sale 257 146
Other non-financial assets 2,306 3,131
Total non-financial assets 107,329 109,528
Total assets 340,329 325,811
Liabilities  
Interest bearing liabilities  
Deposits held 207 209
Government securities 267,254 265,844
Loans 8,944 7,764
Other borrowing 776 818
Total interest bearing liabilities 277,181 274,635
Provisions and payables  
Superannuation liability(a) 149,612 138,515
Other employee liabilities  11,706 12,623
Suppliers payable 5,361 4,607
Personal benefits provisions and payable 12,155 12,436
Subsidies provisions and payable 2,239 2,318
Grants provisions and payable 9,020 10,938
Other provisions and payables 12,115 11,508
Total provisions and payables 202,208 192,944
Total liabilities 479,388 467,580
Net worth(b) -139,060 -141,769
Net financial worth(c) -246,388 -251,297
Net financial liabilities(d)  268,736 271,899
Net debt(e) 137,248 142,493

*As published in the 2012-13 Budget.
(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
May
$m
ACTUAL
2011-2012
YTD May
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Cash receipts from operating activities      
Taxes received 28,235 286,201 309,653
Receipts from sales of goods and services 709 7,317 8,040
Interest receipts 257 3,250 4,343
Dividends and income tax equivalents 95 1,749 2,222
Other receipts 547 4,917 5,129
Total operating receipts 29,843 303,434 329,386
Cash payments for operating activities  
Payments for employees -2,311 -23,179 -25,505
Payments for goods and services -6,369 -65,791 -70,020
Grants and subsidies paid -10,363 -117,874 -136,299
Interest paid -1,258 -9,775 -10,846
Personal benefit payments -9,460 -101,949 -112,588
Other payments  -317 -4,264 -5,078
Total operating payments -30,079 -322,832 -360,336
Net cash flows from operating activities -236 -19,398 -30,950
Cash flows from investments in non-financial assets  
Sales of non-financial assets 21 217 589
Purchases of non-financial assets -1,276 -8,285 -10,882
Net cash flows from investments in
  non-financial assets
-1,256 -8,067 -10,293
Net cash flows from investments in
   financial assets for policy purposes
-366 -5,612 -7,044
Cash flows from investments in
   financial assets for liquidity purposes
 
Increase in investments -4,103 -8,241 1,035
Net cash flows from investments in
   financial assets for liquidity purposes
-4,103 -8,241 1,035
Cash flows from financing activities  
Borrowing (net) 3,752 42,059 48,141
Other financing (net) -141 -812 -896
Net cash flows from financing activities 3,611 41,247 47,245
Net increase/(decrease) in cash held -2,349 -71 -7
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
-1,492 -27,465 -41,243
Finance leases and similar arrangements(b) -1 -13 -119
GFS cash surplus(+)/deficit(-) -1,493 -27,478 -41,362
less Future Fund earnings 118 1,878 3,040
Equals underlying cash balance (c) -1,611 -29,356 -44,402
 plus net cash flows from investments in
  financial assets for policy purposes
-366 -5,612 -7,044
plus Future fund earnings 118 1,878 3,040
Equals headline cash balance -1,858 -33,090 -48,406

*As published in the 2012-13 Budget.
(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
May
$m
ACTUAL
2011-2012
YTD May
$m
REVISED BUDGET
ESTIMATE(a)
2011-2012
FULL YEAR
$m
Expenses by function      
General public services 2,194 19,493 21,944
Defence 2,190 19,206 21,656
Public order and safety 334 3,585 4,072
Education  1,024 26,221 29,259
Health  5,431 54,194 61,168
Social security and welfare  10,760 114,510 126,879
Housing and community amenities 916 5,749 6,238
Recreation and culture 234 2,851 3,705
Fuel and energy 796 5,776 6,633
Agriculture, forestry and fishing 276 2,393 3,255
Mining, manufacturing and construction 168 2,014 2,114
Transport and communication 708 6,165 9,178
Other economic affairs 888 8,749 9,758
Other purposes  
Public debt interest 955 10,508 11,510
Nominal superannuation interest 613 6,738 7,358
General purpose inter-government transactions 3,040 43,630 49,555
Natural disaster relief (b) -1,900 3 815
Contingency reserve 0 0 -1,426
Total expenses 28,625 331,785 373,671

(a) As published in the 2012-13 BUDGET.
(b) The negative movement in May reflects the change to the recognition of prior year expenses associated with the Natural Disaster Relief and Recovery Arrangements program. Expenses associated with disasters in the current financial year will be reflected in the 2011-12 Financial Budget Outcome when the expenses can be reliably measured.

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 prepared in accordance with the Australian Accounting Standards Board 1049 – Whole of Government and General Government Sector Financial Reporting (AASB 1049), which require treatment 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 ‘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 June and 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
May
$m
ACTUAL
2011-2012
YTD May
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Individuals and other withholding taxes      
Gross income tax withholding  13,610 132,345 143,220
Gross other individuals 5,555 31,979 33,610
Less refunds 1,387 24,638 25,600
Total individuals and other withholding taxation 17,778 139,685 151,230
Company tax  3,413 63,841 67,950
Superannuation funds 501 7,994 7,390
Resource rent tax  -1 1,576 1,840
Fringe benefits tax 376 3,738 3,540
Total income taxation revenue 22,068 216,834 231,950

*As published in the 2012-13 BUDGET.

Note 2: Indirect Tax

ACTUAL
2011-2012
May
$m
ACTUAL
2011-2012
YTD May
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Goods and services tax 4,917 46,824 47,790
Wine equalisation tax 63 674 730
Luxury car tax 37 412 440
Excise duty 1,940 23,705 25,860
Customs duty 592 6,474 6,940
Other indirect tax 259 2,570 2,744
Total indirect taxation revenue 7,808 80,658 84,504

*As published in the 2012-13 BUDGET.

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].

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