Media Release

Australian Government General Government Sector Monthly Financial Statements - February 2014

MC 20/14

Senator the Hon. Mathias Cormann
Minister for Finance

28 March 2014

Key Points

  • The underlying cash balance for the 2013-14 financial year to 28 February 2014 was a deficit of $30,277 million.
  • The fiscal balance for the 2013-14 financial year to 28 February 2014 was a deficit of $23,740 million.
AGGREGATESACTUAL
2013-2014
February
$m
ACTUAL
2013-2014
YTD February
$m
MYEFO PROFILE
2013-2014
YTD February
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue 35,475 242,351 241,633 373,922
Expenses 31,909 264,776 267,727 412,060
Net operating balance 3,566 -22,425 -26,094 -38,137
Net capital investment 224 1,315 856 3,706
Fiscal balance 3,342 -23,740 -26,950 -41,843
Receipts(a) 35,480 231,973 231,255 364,930
Payments(b) 28,502 260,720 262,226 409,049
Net Future Fund earnings 75 1,530 2,096 2,871
Underlying cash balance(c) 6,903 -30,277 -33,066 -46,989
Headline cash balance 5,506 -33,628 -38,026 -51,640
Total assets   381,563   386,331
Total liabilities   601,779   562,980
Net worth(d)   -220,215   -176,649
Net debt(e)   179,283   191,520

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) Cash receipts for operating activities and sales of non-financial assets.
(b) Cash payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases.
(c) Excludes net Future Fund earnings. Consistent with the 2013-14 Budget, the net adjustment for the Future Fund is shown separately.
(d) Net worth is calculated as total assets minus total liabilities.
(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.

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 for the year to 28 February 2014 was a deficit of $30,277 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $33,066 million. The difference of $2,789 million relates to lower than expected cash payments and higher than expected cash receipts, excluding net Future Fund earnings.

Fiscal Balance

The fiscal balance for the year to 28 February 2014 was a deficit of $23,740 million, compared to the MYEFO profile deficit of $26,950 million. The difference of $3,211 million relates to higher than expected revenue and lower than expected expenses, partially offset by higher net capital investment.

  • Revenues
    Total revenue was $719 million higher than the MYEFO profile, primarily due to higher than expected other non-taxation revenue.
  • Expenses
    Total expenses were $2,950 million lower than the MYEFO profile, due to lower than expected expenses for grants, wages and salaries and the supply of goods and services.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $220,215 million as at 28 February 2014. The net debt of the Australian Government general government sector is $179,283 million as at 28 February 2014.

 




Senator the Hon Mathias Cormann
Minister for Finance

28 March 2014
David Tune
Secretary of the
Department of Finance
28 March 2014
 
 
 
Contact: Senator the Hon Mathias Cormann's Office:
Department of Finance
Karen Wu       (02) 6277 7400
Amelia Huang (02) 6215 2222

Australian Government general government sector operating statement

 NoteACTUAL
2013-2014
February
$m
ACTUAL
2013-2014
YTD February
$m
MYEFO PROFILE
2013-2014
YTD February
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue          
Taxation revenue 1, 2 33,243 227,904 227,574 351,434
Sales of goods and services   700 5,865 5,728 8,680
Interest income   147 2,028 2,486 3,730
Dividend income   257 1,577 1,644 3,792
Other   1,129 4,978 4,201 6,286
Total revenue   35,475 242,351 241,633 373,922
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,454 12,512 13,107 19,815
Superannuation   452 3,639 3,600 5,304
Depreciation and amortisation   538 4,124 4,241 6,426
Supply of goods and services   7,328 49,533 49,977 74,514
Other operating expenses(a)   369 3,469 3,628 5,647
Total gross operating expenses   10,141 73,277 74,553 111,706
Superannuation interest expense   680 5,464 5,465 8,197
Interest expenses   1,257 9,239 9,371 14,926
Current transfers          
Current grants   8,657 75,924 77,607 118,955
Subsidy expenses   745 10,522 10,899 15,345
Personal benefits   9,374 82,798 82,596 122,784
Total current transfers   18,776 169,244 171,102 257,085
Capital transfers          
Mutually agreed write-downs   336 1,866 1,456 2,382
Other capital grants   720 5,686 5,780 17,764
Total capital transfers   1,056 7,552 7,236 20,146
Total expenses 3 31,909 264,776 267,727 412,060
Net operating balance   3,566 -22,425 -26,094 -38,137
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -557 -5,200 -3,776 -6,016
Assets recognised for the first time   47 399 251 456
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   502 -908 59 60
Net swap interest received   -76 -664 -364 -499
Market valuation of debt   122 2,423 7,385 7,371
Other gains/(losses)   584 8,722 3,654 5,672
Total other economic flows          
- included in operating result   622 4,772 6,890 7,043
Operating result   4,188 -17,653 -19,859 -31,094
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   4 14 59 6,430
Actuarial revaluations   0 0 0 10
Other economic revaluations(d)   47 74 67 865
Total other economic flows - included in equity   51 88 126 7,305
Comprehensive result - Total change in net worth   4,239 -17,565 -19,733 -23,789
Net operating balance   3,566 -22,425 -26,094 -38,137
Net acquisition of non-financial assets          
Purchases of non-financial assets   549 5,225 5,212 10,154
less Sales of non-financial assets   -64 185 303 452
less Depreciation   538 4,124 4,241 6,426
plus Change in inventories   129 305 91 280
plus Other movements in non-financial assets   21 92 98 150
Total net acquisition of non-financial assets   224 1,315 856 3,706
Fiscal balance (Net lending/borrowing)(e)   3,342 -23,740 -26,950 -41,843

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) Consistent with Australian Bureau of Statistics' (ABS) Government Finance Statistics (GFS) classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) The presentation of other economic flows has changed to align more closely with Australian Accounting Standard AASB 1049.
(c) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(d) Largely reflects other revaluation of assets and liabilities.
(e) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

 ACTUAL
as at
28 February 2014
$m
MYEFO ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 5,737 2,720
Advances paid 37,893 39,807
Investments, loans and placements 114,376 115,405
Other receivables(a) 48,748 44,744
Equity investments    
Investments in other public sector entities 27,016 35,557
Equity accounted investments 297 300
Investments - shares 36,918 34,753
Total financial assets 270,984 273,286
Non-financial assets    
Land 8,884 8,981
Buildings 24,155 24,601
Plant, equipment and infrastructure 52,683 54,485
Inventories 7,894 7,820
Intangibles 5,655 5,828
Investment property 212 198
Biological assets 31 33
Heritage and cultural assets 10,567 10,561
Assets held for sale 120 95
Other non-financial assets(a) 376 442
Total non-financial assets 110,579 113,045
Total assets 381,563 386,331
Liabilities    
Interest bearing liabilities    
Deposits held 221 182
Government securities 326,022 335,066
Loans 9,451 12,708
Other borrowing 1,594 1,496
Total interest bearing liabilities 337,289 349,452
Provisions and payables    
Superannuation liability(b) 197,668 149,786
Other employee liabilities 14,034 14,963
Suppliers payable 5,641 4,830
Personal benefits provisions and payable 11,989 12,147
Subsidies provisions and payable 6,239 3,986
Grants provisions and payable 14,805 14,154
Other provisions and payables 14,114 13,661
Total provisions and payables 264,490 213,527
Total liabilities 601,779 562,980
Net worth(c) -220,215 -176,649
Net financial worth(d) -330,794 -289,693
Net financial liabilities(e) 357,811 325,251
Net debt(f) 179,283 191,520

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) As a result of the 2013-14 Budget there has been a reclassification between other non-financial assets and other receivables.
(b) 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.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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
2013-2014
February
$m
ACTUAL
2013-2014
YTD February
$m
MYEFO PROFILE
2013-2014
YTD February
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 33,151 216,873 216,635 343,480
Receipts from sales of goods and services 850 5,976 5,661 8,626
Interest receipts 110 1,804 2,420 3,591
Dividends and income tax equivalents 162 1,937 2,087 2,883
Other receipts 1,247 5,198 4,281 5,941
Total operating receipts 35,518 231,788 231,085 364,521
Cash payments for operating activities        
Payments for employees -1,998 -17,835 -17,957 -27,037
Payments for goods and services -6,369 -49,246 -50,303 -74,464
Grants and subsidies paid -9,765 -90,451 -91,479 -153,845
Interest paid -634 -7,767 -7,723 -12,419
Personal benefit payments -8,852 -86,287 -85,887 -125,082
Other payments -334 -3,691 -3,543 -5,873
Total operating payments -27,953 -255,278 -256,891 -398,719
Net cash flows from operating activities 7,566 -23,490 -25,806 -34,198
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets -39 185 170 409
Purchases of non-financial assets -544 -5,350 -5,160 -9,861
Net cash flows from investments in
  non-financial assets
-583 -5,165 -4,990 -9,451
Net cash flows from investments in
  financial assets for policy purposes
-1,471 -4,881 -7,056 -7,522
Cash flows from investments in
  financial assets for liquidity purposes
       
Increase in investments -8,091 -4,214 -8,788 -2,968
Net cash flows from investments in
  financial assets for liquidity purposes
-8,091 -4,214 -8,788 -2,968
Cash flows from financing activities        
Borrowing (net) 4,771 42,733 49,537 56,850
Other financing (net) -105 -1,322 -1,328 -2,065
Net cash flows from financing activities 4,666 41,411 48,209 54,785
Net increase/(decrease) in cash held 2,086 3,662 1,570 645
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
6,983 -28,655 -30,796 -43,650
Finance leases and similar arrangements(b) -5 -92 -175 -469
GFS cash surplus(+)/deficit(-) 6,977 -28,747 -30,970 -44,118
less Net Future Fund earnings 75 1,530 2,096 2,871
Equals underlying cash balance(c) 6,903 -30,277 -33,066 -46,989
plus Net cash flows from investments in
  financial assets for policy purposes
-1,471 -4,881 -7,056 -7,522
plus Net Future Fund earnings 75 1,530 2,096 2,871
Equals headline cash balance 5,506 -33,628 -38,026 -51,640

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (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 Australian Bureau of Statistics.

Note 1: Income Tax

 
ACTUAL
2013-2014
February
$m

ACTUAL
2013-2014
YTD February
$m
MYEFO PROFILE
2013-2014
YTD February
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 14,546 105,394 104,774 158,510
Gross other individuals 3,661 20,881 20,826 36,650
less Refunds 969 22,747 22,920 27,200
Total individuals and other withholding taxation 17,238 103,528 102,680 167,960
Company tax 3,915 46,283 46,899 70,400
Superannuation funds 825 5,520 5,416 6,990
Petroleum resource rent tax 83 721 1,028 1,900
Minerals resource rent tax 0 312 377 500
Fringe benefits tax 199 2,830 2,850 4,140
Total income taxation revenue 22,261 159,194 159,249 251,890

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).

Note 2: Indirect Tax

 ACTUAL
2013-2014
February
$m
ACTUAL
2013-2014
YTD February
$m
MYEFO PROFILE
2013-2014
YTD February
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 7,372 37,059 36,826 52,680
Wine equalisation tax 81 557 519 750
Luxury car tax 42 296 281 400
Excise duty 1,852 17,124 17,634 25,900
Customs duty 731 6,218 5,959 8,930
Carbon pricing mechanism (a) 674 5,129 4,893 7,340
Other indirect tax 229 2,326 2,212 3,545
Total indirect taxation revenue 10,982 68,709 68,325 99,545

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) Revenue from the carbon pricing mechanism has been estimated based on expected annual results.

Note 3: Total expenses by function

 ACTUAL
2013-2014
February
$m
ACTUAL
2013-2014
YTD February
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 1,179 14,056 33,362
Defence 3,700 15,629 22,646
Public order and safety 316 2,808 4,415
Education 2,022 22,382 30,174
Health 5,239 41,380 64,685
Social security and welfare 10,305 92,607 138,667
Housing and community amenities 227 5,943 8,622
Recreation and culture 279 1,970 3,835
Fuel and energy 480 4,420 7,256
Agriculture, Forestry and Fishing 203 1,493 2,632
Mining, manufacturing and construction 204 1,649 2,870
Transport and communication 388 2,752 7,398
Other economic affairs 1,100 8,149 11,793
Other purposes      
Public debt interest 1,058 8,572 13,467
Nominal superannuation interest 680 5,464 8,197
General purpose inter-government transactions 4,530 35,501 52,379
Natural disaster relief 0 0 157
Contingency reserve 0 0 -497
Total expenses 31,909 264,776 412,060

* As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).

NOTES:

Australian Accounting Standard 1049

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.

Taxation Revenue

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 Commissioner of Taxation, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

Style Conventions

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)

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 standard IMF requirement is that monthly data is released at the end of the following month. Australia applies a special flexibility option which allows it to publish late the last and first month of a financial year.

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. 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://aofm.gov.au/statistics/securities-on-issue.

 

[ENDS]