About this Budget Paper
Purpose and Scope
Budget Paper No. 2 Budget Statement provides information on State finances in aggregate. The
objectives of this paper are to:

inform Parliament and the public of the State’s fiscal position and the Government’s fiscal
strategy

meet requirements under s. 27AA of the Public Finance and Audit Act 1983, which prescribes
the content of Budget Papers, including providing four-year projections of all major
economic and financial variables, and revised estimates for the preceding Budget year and
explanations of any significant variations

meet requirements under s. 8 of the Fiscal Responsibility Act 2012, including providing a
statement of the Government’s fiscal strategy, a report on performance against the fiscal
objects, targets and principles contained in the Act, and a report on the impact of any budget
measures on the State’s long-term fiscal gap

enable interstate comparisons by reporting within the Australian Bureau of Statistics’
Government Finance Statistics framework.
The general government sector represents the scope of the Budget. However, this Budget Paper
also includes information on the total state sector. This is to provide a comprehensive picture of
the State’s fiscal position and strategy, relevant not only to Parliament but also to other interested
parties such as credit rating agencies.
Improvements in financial reporting
The Treasurer committed to improving transparency in Budget reporting in the last two Budget
Speeches.
In the 2012-13 Budget Statement a new statement was included which reconciled changes in total
expenses since the previous Budget. This year statements reconciling changes in both total
revenue as well as total expenses have been prepared. These statements seek to distinguish
between changes in revenues and expenses that are a result of new Government policy decisions
announced in this Budget, and those that result from parameter and other variations on a ‘no
policy change’ basis.
Improved financial reporting is also being pursued through the Treasurer’s request that the
Auditor-General review the reasonableness of the estimates and forecasts in the 2013-14 Budget.
A copy of the Independent Assurance Practitioners Report from that review is printed within the
covers of this Budget Paper.
Budget Statement 2013-14
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About this Budget Paper
Amendments to Accounting Standard AASB 119
Section 27A of the Public Finance and Audit Act 1983 requires the Budget to be prepared in accordance
with Australian Accounting Standards.
Commencing in 2013-14, Accounting Standard AASB 119 Employee Benefits has been amended.
The amended standard significantly affects the measurement of superannuation expenses shown in
the Budget Operating Statement.
Previous AASB 119
Expected investment earnings of around 8.6 per cent on superannuation fund
assets, based on independent advice and historical long term earnings
achieved by State Super, were recognised as an offset to gross
superannuation expense.
Amended AASB 119
Investment earnings equal to long term Commonwealth bond yields (around
3.3 per cent for 2013-14), irrespective of how funds are invested will be
recognised as an offset to gross superannuation expense.
The details are provided in Chapter 1.
Notes
The Budget year refers to 2013-14, while the forward estimates period refers to 2014-15, 2015-16
and 2016-17.
Figures in tables, charts and text have been rounded. Discrepancies between totals and sums of
components reflect rounding. Percentages are based on the underlying unrounded amounts.
Unless otherwise indicated, the data source for tables and charts is NSW Treasury.
One billion equals one thousand million.
n.a. means data is not available. N/A means not applicable.
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Budget Statement 2013-14