Appendix B:
2011-12 Budget – Outcome and
Summary of Variations
Budget outcome for 2011-12
The Budget result for 2011-12 is estimated to be a deficit of $337 million compared with a
budgeted deficit of $718 million.
Total revenue is estimated to be $58.5 billion which is $574 million or 1.0 per cent below the
original budget estimate of $59.0 billion.
Total expenses are estimated to be $58.8 billion which is $956 million or 1.6 per cent below the
original budget estimate of $59.7 billion.
A detailed explanation of revenue variances by line item and expense variances by agency is set
out in the attached table.
Budget Statement 2012-13
B-1
Summary of Variations
Category/Agency
Budget
Revised
Variation
Comment on Major Variations
$m
$m
$m
Payroll Tax
7,538
7,625
87
Transfer duty
3,617
3,743
126
Land Tax
2,485
2,370
(115)
575
504
(71)
Workers Compensation
(Dust Diseases Board)
29
86
57
Mainly due to an increase in outstanding future
claims liabilities. This is offset by an increase in
expenses.
Other Duties and Taxes
6,314
6,331
17
Aggregated net minor variations.
20,558
20,659
101
15,175
14,239
(936)
30
49
19
Tax liabilities have been reassessed based on prior
year actuals.
6,806
6,797
(9)
Aggregated net minor variations across agencies.
1,877
2,346
469
823
884
61
242
102
(140)
1,510
1,479
(31)
26,463
25,896
(567)
35
...
(35)
Other
550
564
14
Total Grants and Subsidies
585
564
(21)
4,857
4,832
(25)
Other
533
556
23
Total Interest Income
533
556
23
Taxation
Government Guarantee of Debt
Levy
Total Taxation
Payroll Tax revenue has been stronger than
suggested by wages and employment growth.
Mainly due to duty from large commercial
transactions.
Increase in land values for the 2012 land tax year
was slightly lower than the Budget assumptions.
Lower than forecast State Owned Corporation
borrowings and lower interest rates.
Commonwealth Grants
General Purpose:
GST Revenue Grants
Snowy Hydro Ltd - Tax
Compensation
National Agreements:
Lower national GST collections reflecting weaker
economic activity and a shift in spending to GST
exempt goods and services.
National Partnership Payments:
Transport for NSW
Department of Education and
Communities
Crown Finance Entity
Other Grants and Subsidies
Total Commonwealth Grants
The Commonwealth brought forward $690 million
of transport related funding from 2012-13 to
2011-12.
Mainly Commonwealth contribution for the
redevelopment of Sydney Cricket Ground.
Lower than expected Natural Disaster Funding.
Aggregated net minor variations across agencies.
Grants and Subsidies
NSW Businesslink
Total Sales of Goods and
Services
Restructure of the Housing portfolio has reduced
fee for service revenue from Land and Housing
Corporation.
Aggregated net minor variances.
Aggregated net minor variances
Interest Income
Dividend and Income Tax
Equivalent Income from
other Sectors
B-2
1,815
2,115
300
Aggregated net minor variances.
Mainly higher profits from the electricity sector and
distributions associated with Sydney Water’s long
term lease of the Kurnell desalination plant.
Budget Statement 2012-13
Category/Agency
Other Dividends and
Distributions
Total Fines, Regulatory
Fees and Other Revenue
Budget
Revised
Variation
$m
$m
$m
529
387
(142)
Comment on Major Variations
Mainly changes in timing of dividends from Snowy
Hydro Limited and lower returns on investments
held by NSW Self Insurance Corporation.
Reduction in mining royalties largely driven by
higher exchange rates, lower than forecast contract
prices and a shift towards lower grades of coal.
Delays in transfer of properties from the Land and
Housing Corporation to Aboriginal Housing Office.
3,686
3,444
(242)
59,026
58,452
(574)
Department of Premier and
Cabinet
1,300
1,161
(139)
Transport for NSW
5,018
5,030
12
Crown Finance Entity
4,870
4,303
(567)
Under expenditure due to not commencing the
Barangaroo pedestrian tunnel as a result of delays
in planning approvals, lower than expected uptake
of the Making Sydney Liveable scheme, under
expenditure of employee costs and a favourable
rail pricing offsetting rail costs (IPART).
12,290
11,966
(324)
Lower expenditure on the Productivity Places
Program National Partnership due to higher
completion rates for multiple year courses.
Delayed rollout of the Universal Access to Early
Childhood Education associated with finalisation of
the funding arrangements across service providers.
Department of Family and
Community Services
4,477
4,374
(103)
Mainly transfer of housing staff to Department of
Finance and Services.
NSW Police Force
2,360
2,475
115
Increases in Police Death and Disability costs.
Department of Trade and
Investment, Regional
Infrastructure & Services
1,834
1,757
(77)
Reassessment of the number of Aboriginal Land
Council claims to be processed in 2011-12, and
delays in the construction of the Orange Pipeline.
Timing adjustment results in underspend in the
State Investment Attraction Scheme and Regional
Industries Investment Fund.
Department of Finance and
Services
1,308
1,317
9
55
76
21
TOTAL REVENUES
EXPENSES
Department of Education and
Communities
State Emergency Services
Other
TOTAL EXPENSES
BUDGET RESULT SURPLUS/(DEFICIT)
Budget Statement 2012-13
26,232
26,329
97
59,744
58,788
(956)
(718)
(337)
381
Mainly lower than expected payments from the
Climate Change Fund due to fewer than expected
connections and poor weather impacting energy
output.
Light Rail transferred from recurrent to capital ($47
million), additional funding for redundancies and
impact of transfer of Country Rail Infrastructure
Authority to budget.
Transfer in of 700 staff from Land and Housing
Corporation, partially offset by staff vacancies and
changes to State Fleet leasing terms. Re-alignment
of personnel services to changed client needs.
Additional Natural Disaster responses, primarily
the floods in Northern NSW.
Aggregated net minor variances.
B-3
Category/Agency
Budget
Revised
Variation
$m
$m
$m
Comment on Major Variations
Capital Expenditure
Transport for NSW
219
270
51
Reclassify Light Rail expenditure from recurrent to
capital expenditure.
Ministry of Health
921
705
(216)
Delays in various projects, including Wagga Wagga
Base Hospital, Hornsby Hospital, Graythwaite
Rehabilitation Centre, Royal North Shore Hospital,
Liverpool Hospital and COAG Sub-Acute programs.
Department of Finance and
Services
394
345
(49)
Delay in Corporate Shared Services Reform Project.
Department of Education and
Communities
752
716
(36)
Delays in the Building the Education Revolution
National Partnership program, due to contractual
disputes and delays in finalisation of some
contracts.
3,166
2,809
(357)
NSW Businesslink
90
57
(33)
Delays in IT expenditure due to changes in the
Shared Services implementation timetable.
Barangaroo Delivery Authority
32
11
(21)
Delays in Headland Park works, due to delayed
planning approvals.
Other
1,267
1,048
(219)
Total Capital Expenditure
6,841
5,961
(880)
Barangaroo Delivery Authority
231
80
(151)
Other
404
414
10
Total Sales of Non-Financial
Assets
635
494
(141)
Other
3,056
3,060
4
Total Depreciation
3,056
3,060
4
4
7
3
Department of Trade and
Investment, Regional
Infrastructure & Services
(84)
(44)
40
Aboriginal Housing Office
108
32
(76)
99
108
9
123
96
(27)
(3,986)
(2,833)
1,153
Roads and Maritime Services
Delays in the delivery of the Pacific Highway,
Hunter Expressway, Hume Highway, Great Western
Highway and various other projects mainly as a
result of several instances of widespread flooding
throughout the year.
Aggregated net minor variations.
Sales of Non-Financial Assets
Changes in revenue recognition of finance leases
due to delays in securing tenants for the initial
commercial towers and delays in construction
works.
Aggregated net minor variations.
Depreciation
Change in Inventories
Aggregated net minor variations.
Aggregated net minor variations.
Other Movements in
Non-Financial Assets
Other
Total Other Movements in
Non-Financial Assets
NET (LENDING)/BORROWING
B-4
Reduction in the number of land assets transferred
due to a decrease in the numbers of Aboriginal
Land Claims processed.
Delays in transfer of properties from the Land and
Housing Corporation and reduction in average
property valuation.
Aggregated net minor variations.
Budget Statement 2012-13