Media Release

Australian Government General Government Sector Monthly Financial Statements - March 2014

MC 33/14

Senator the Hon. Mathias Cormann
Minister for Finance

9 May 2014

Key Points

  • The underlying cash balance for the 2013-14 financial year to 31 March 2014 was a deficit of $34,783 million.
  • The fiscal balance for the 2013-14 financial year to 31 March 2014 was a deficit of $27,202 million.
AGGREGATESACTUAL
2013-2014
March
$m
ACTUAL
2013-2014
YTD March
$m
MYEFO PROFILE
2013-2014
YTD March
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue 28,800 271,152 271,175 373,922
Expenses 32,262 297,038 299,845 412,060
Net operating balance -3,462 -25,887 -28,670 -38,137
Net capital investment 1 1,315 1,133 3,706
Fiscal balance -3,462 -27,202 -29,803 -41,843
Receipts(a) 25,986 257,959 259,339 364,930
Payments(b) 30,182 290,902 292,828 409,049
Net Future Fund earnings 310 1,840 2,325 2,871
Underlying cash balance(c) -4,506 -34,783 -35,814 -46,989
Headline cash balance -4,215 -37,842 -41,161 -51,640
Total assets   388,465   386,331
Total liabilities   613,397   562,980
Net worth(d)   -224,932   -176,649
Net debt(e)   183,497   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 31 March 2014 was a deficit of $34,783 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $35,814 million. The difference of $1,031 million relates to lower than expected cash payments partially offset by lower than expected cash receipts, excluding net Future Fund earnings.

Fiscal Balance

The fiscal balance for the year to 31 March 2014 was a deficit of $27,202 million, compared to the MYEFO profile deficit of $29,803 million. The difference of $2,601 million largely relates to lower than expected expenses, partially offset by higher net capital investment.

  • Revenues
    Total revenue was $23 million lower than the MYEFO profile. This lower than forecast figure included $175 million of refunds from previously overpaid Minerals Resource Rent Tax instalments.
  • Expenses
    Total expenses were $2,807 million lower than the MYEFO profile, due to lower than expected supply of goods and services expenses, wages and salaries expenses and grants and subsidies expenses, partially offset by higher personal benefits.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $224,932 million as at 31 March 2014. The net debt of the Australian Government general government sector is $183,497 million as at 31 March 2014.




Senator the Hon Mathias Cormann
Minister for Finance

9 May 2014
David Tune
Secretary of the
Department of Finance
9 May 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
March
$m
ACTUAL
2013-2014
YTD March
$m
MYEFO PROFILE
2013-2014
YTD March
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue          
Taxation revenue 1, 2 27,374 255,278 255,439 351,434
Sales of goods and services   631 6,496 6,436 8,680
Interest income   257 2,285 2,794 3,730
Dividend income   340 1,917 1,898 3,792
Other   198 5,176 4,607 6,286
Total revenue   28,800 271,152 271,175 373,922
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,580 14,091 14,708 19,815
Superannuation   472 4,111 4,039 5,304
Depreciation and amortisation   483 4,607 4,782 6,426
Supply of goods and services   6,070 55,604 56,352 74,514
Other operating expenses(a)   521 3,989 3,963 5,647
Total gross operating expenses   9,125 82,402 83,843 111,706
Superannuation interest expense   683 6,147 6,148 8,197
Interest expenses   1,174 10,412 10,683 14,926
Current transfers          
Current grants   7,647 83,572 86,191 118,955
Subsidy expenses   927 11,449 11,974 15,345
Personal benefits   11,787 94,585 93,000 122,784
Total current transfers   20,362 189,606 191,165 257,085
Capital transfers          
Mutually agreed write-downs   345 2,211 1,618 2,382
Other capital grants   573 6,260 6,389 17,764
Total capital transfers   919 8,471 8,007 20,146
Total expenses 3 32,262 297,038 299,845 412,060
Net operating balance   -3,462 -25,887 -28,670 -38,137
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -1,222 -6,422 -3,776 -6,016
Assets recognised for the first time   46 445 251 456
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   736 -172 59 60
Net swap interest received   39 -624 -404 -499
Market valuation of debt   1,608 4,031 7,387 7,371
Other gains/(losses)   -1,327 7,395 4,011 5,672
Total other economic flows          
- included in operating result   -119 4,653 6,890 7,043
Operating result   -3,581 -21,234 -22,516 -31,094
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -1,133 -1,119 59 6,430
Actuarial revaluations   0 0 0 10
Other economic revaluations(d)   -4 71 88 865
Total other economic flows - included in equity   -1,136 -1,048 148 7,305
Comprehensive result - Total change in net worth   -4,717 -22,282 -22,368 -23,789
Net operating balance   -3,462 -25,887 -28,670 -38,137
Net acquisition of non-financial assets          
Purchases of non-financial assets   398 5,623 6,004 10,154
less Sales of non-financial assets   13 197 318 452
less Depreciation   483 4,607 4,782 6,426
plus Change in inventories   56 362 119 280
plus Other movements in non-financial assets   42 135 110 150
Total net acquisition of non-financial assets   1 1,315 1,133 3,706
Fiscal balance (Net lending/borrowing)(e)   -3,462 -27,202 -29,803 -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
31 March 2014
$m
MYEFO ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 2,852 2,720
Advances paid 38,160 39,807
Investments, loans and placements 124,215 115,405
Other receivables(a) 49,747 44,744
Equity investments    
Investments in other public sector entities 26,035 35,557
Equity accounted investments 299 300
Investments - shares 36,325 34,753
Total financial assets 277,632 273,286
Non-financial assets    
Land 8,898 8,981
Buildings 24,322 24,601
Plant, equipment and infrastructure 52,771 54,485
Inventories 7,907 7,820
Intangibles 5,635 5,828
Investment property 198 198
Biological assets 29 33
Heritage and cultural assets 10,566 10,561
Assets held for sale 88 95
Other non-financial assets(a) 418 442
Total non-financial assets 110,833 113,045
Total assets 388,465 386,331
Liabilities    
Interest bearing liabilities    
Deposits held 221 182
Government securities 337,504 335,066
Loans 9,301 12,708
Other borrowing 1,697 1,496
Total interest bearing liabilities 348,723 349,452
Provisions and payables    
Superannuation liability(b) 198,284 149,786
Other employee liabilities 14,336 14,963
Suppliers payable 5,093 4,830
Personal benefits provisions and payable 12,771 12,147
Subsidies provisions and payable 6,453 3,986
Grants provisions and payable 14,647 14,154
Other provisions and payables 13,090 13,661
Total provisions and payables 264,674 213,527
Total liabilities 613,397 562,980
Net worth(c) -224,932 -176,649
Net financial worth(d) -335,765 -289,693
Net financial liabilities(e) 361,800 325,251
Net debt(f) 183,497 191,520

*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
March
$m
ACTUAL
2013-2014
YTD March
$m
MYEFO PROFILE
2013-2014
YTD March
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 24,752 241,625 243,180 343,480
Receipts from sales of goods and services 504 6,480 6,340 8,626
Interest receipts 300 2,104 2,708 3,591
Dividends and income tax equivalents 316 2,253 2,350 2,883
Other receipts 102 5,300 4,577 5,941
Total operating receipts 25,973 257,761 259,155 364,521
Cash payments for operating activities        
Payments for employees -1,986 -19,821 -20,113 -27,037
Payments for goods and services -6,693 -55,939 -57,153 -74,464
Grants and subsidies paid -9,673 -100,124 -101,650 -153,845
Interest paid -424 -8,191 -8,270 -12,419
Personal benefit payments -10,614 -96,901 -95,666 -125,082
Other payments -342 -4,033 -3,836 -5,873
Total operating payments -29,731 -285,008 -286,689 -398,719
Net cash flows from operating activities -3,757 -27,247 -27,535 -34,198
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 13 197 184 409
Purchases of non-financial assets -446 -5,796 -5,916 -9,861
Net cash flows from investments in
  non-financial assets
-434 -5,599 -5,732 -9,451
Net cash flows from investments in
  financial assets for policy purposes
-18 -4,899 -7,672 -7,522
Cash flows from investments in
  financial assets for liquidity purposes
       
Increase in investments -11,059 -15,273 -6,035 -2,968
Net cash flows from investments in
  financial assets for liquidity purposes
-11,059 -15,273 -6,035 -2,968
Cash flows from financing activities        
Borrowing (net) 12,278 55,011 54,721 56,850
Other financing (net) 39 -1,282 -1,324 -2,065
Net cash flows from financing activities 12,318 53,729 53,398 54,785
Net increase/(decrease) in cash held -2,951 711 6,425 645
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
-4,191 -32,846 -33,266 -43,650
Finance leases and similar arrangements(b) -5 -98 -223 -469
GFS cash surplus(+)/deficit(-) -4,196 -32,943 -33,489 -44,118
less Net Future Fund earnings 310 1,840 2,325 2,871
Equals underlying cash balance(c) -4,506 -34,783 -35,814 -46,989
plus Net cash flows from investments in
  financial assets for policy purposes
-18 -4,899 -7,672 -7,522
plus Net Future Fund earnings 310 1,840 2,325 2,871
Equals headline cash balance -4,215 -37,842 -41,161 -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
March
$m

ACTUAL
2013-2014
YTD March
$m
MYEFO PROFILE
2013-2014
YTD March
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 13,116 118,509 118,431 158,510
Gross other individuals 3,628 24,509 23,783 36,650
less Refunds 1,029 23,776 23,880 27,200
Total individuals and other withholding taxation 15,715 119,243 118,334 167,960
Company tax 4,673 50,956 52,430 70,400
Superannuation funds (a) -170 5,351 5,331 6,990
Petroleum resource rent tax 146 867 1,042 1,900
Minerals resource rent tax (a) -175 137 377 500
Fringe benefits tax 40 2,869 2,872 4,140
Total income taxation revenue 20,229 179,423 180,387 251,890

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) the negative figures reflect the impact of refunds.

Note 2: Indirect Tax

 ACTUAL
2013-2014
March
$m
ACTUAL
2013-2014
YTD March
$m
MYEFO PROFILE
2013-2014
YTD March
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 3,232 40,291 39,485 52,680
Wine equalisation tax 61 617 551 750
Luxury car tax 45 342 307 400
Excise duty 2,396 19,520 20,029 25,900
Customs duty 620 6,838 6,664 8,930
Carbon pricing mechanism (a) 440 5,569 5,505 7,340
Other indirect tax 351 2,677 2,510 3,545
Total indirect taxation revenue 7,145 75,854 75,052 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
March
$m
ACTUAL
2013-2014
YTD March
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 1,430 15,486 33,362
Defence 1,879 17,508 22,646
Public order and safety 330 3,139 4,415
Education 1,585 23,967 30,174
Health 5,456 46,837 64,685
Social security and welfare 12,822 105,429 138,667
Housing and community amenities 317 6,260 8,622
Recreation and culture 257 2,228 3,835
Fuel and energy 502 4,922 7,256
Agriculture, Forestry and Fishing 108 1,601 2,632
Mining, manufacturing and construction 285 1,934 2,870
Transport and communication 229 2,980 7,398
Other economic affairs 920 9,069 11,793
Other purposes      
Public debt interest 1,225 9,798 13,467
Nominal superannuation interest 683 6,147 8,197
General purpose inter-government transactions 4,234 39,735 52,379
Natural disaster relief 0 0 157
Contingency reserve 0 0 -497
Total expenses 32,262 297,038 412,060

* 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]