The 2013-14 Consolidated Financial Statements for the Australian Government is the final report card on the previous Government’s bad financial management.
The Consolidated Financial Statements present the financial results for the Whole of Government inclusive of all Australian Government controlled entities, including those outside the General Government Sector, such as Australia Post and the Reserve Bank of Australia, whereas the Final Budget Outcome presents the financial results for the General Government Sector only.
In 2013-14, the Australian Government recorded a fiscal balance deficit of $42.2 billion, an increase from the $28.0 billion fiscal balance deficit in 2012-13. Across all Australian Government controlled entities there was a cash deficit of $40.1 billion in 2013-14, an increase from the $19.5 billion cash deficit in 2012-13.
The Consolidated Financial Statements again demonstrate Labor’s legacy of six successive deficits totalling $258.3 billion in fiscal balance terms and $226.3 billion in cash terms across the whole of the government.
In their last Budget, the 2013-14 Budget, Labor left Australia with a total of $123 billion in projected deficits across the General Government Sector.
Without action to repair the budget, gross debt would have spiralled to $667 billion over the medium term and continued to grow.
The Government is working to repair the Budget as part of our plan to build a stronger, more prosperous economy where everyone can get ahead.
We are continuing to take the difficult but necessary decisions to make government spending sustainable and bring the Budget back to surplus over the medium term.
The Commonwealth Auditor-General has issued an unqualified audit report on the Consolidated Financial Statements.
Key highlights from the Consolidated Financial Statements are included below. A full copy of the Consolidated Financial Statements is available at http://www.finance.gov.au/publications/commonwealth-consolidated-financial-statements.
|Net operating balance||(33.2)||(23.5)||(9.7)|
|Net capital investment||9.0||4.5||4.5|
The following table demonstrates the difference between good and bad financial management in government:
|Fiscal balance||$22.3 billion surplus||$42.2 billion deficit|
|Cash balance||$24.6 billion surplus||$40.1 billion deficit|
|Budget position||6th successive surplus||6th successive deficit|
|Expenses||$289.5 billion||$419.4 billion|
|Revenue||$315.1 billion||$386.2 billion|
|Total Assets||$339.2 billion||$489.8 billion|
|Total Liabilities||$271.5 billion||$754.1 billion|
|Net worth||+$67.7 billion||-$264.3 billion|
|Net Interest||$3.7 billion earned||$10.1 billion paid|
Source: Consolidated Financial Statements
Senator the Hon Mathias Cormann
Minister for Finance
12 December 2014
Karen Wu – 0428 350 139