Economic Statement
A
A: F
S
The budget financial statements consist of an operating statement, including other economic flows, a balance sheet, and a cash flow statement for the Australian
Government general government sector (GGS).
The Charter of Budget Honesty Act 1998 (the Charter) requires that the budget be based on external reporting standards. These are:
• the Australian Bureau of Statistics’ (ABS) accrual Government Finance Statistics
(GFS) publication, Australian System of Government Finance Statistics: Concepts,
Sources and Methods , (cat. no. 5514.0), which in turn is based on the International
Monetary Fund accrual GFS framework; and
• Australian Accounting Standards (AAS), being AASB 1049 Whole of Government and
General Government Sector Financial Reporting and other applicable Australian
Equivalents to International Financial Reporting Standards.
The financial statements have been prepared on the same basis as the budget papers reflecting the Government’s accounting policy that ABS GFS remains the basis of budget accounting policy, except where the Government applies the AAS because it provides a better conceptual basis for presenting information of relevance to users of public sector financial reports.
Budget reporting focuses on the GGS. The GGS provides public services that are mainly non market in nature and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies, user charging and external funding. This sector comprises all government departments, offices and some other bodies. In preparing financial statements for the GGS all material transactions and balances between entities within the GGS have been eliminated.
Further information on the reporting frameworks and departures are provided in
Statement 9 of Budget Paper No. 1, Budget Strategy and Outlook 2010-11 .
18

Economic Statement
Table A1: Australian Government general government sector operating statement
Estimates
2010-11
$m
2011-12
$m
Projections
2012-13
$m
2013-14
$m
Revenue
Taxation revenue
Sales of goods and services
Interest income
Dividend income
Other
Total revenue
302,603
8,047
5,276
1,322
4,838
322,086
338,446
8,249
5,140
1,351
5,150
358,336
362,744
8,158
4,943
1,320
5,483
382,648
384,553
8,074
4,889
2,023
5,609
405,149
Expenses
Gross operating expenses
Wages and salaries(a)
Superannuation
Depreciation and amortisation
Supply of goods and services
Other operating expenses(a)
Total gross operating expenses
Superannuation interest expense
Interest expenses
Current transfers
Current grants
Subsidy expenses
Personal benefits
Total current transfers
Capital transfers
Mutually agreed write-downs
Other capital grants
Total capital transfers
Total expenses
Net operating balance
Other economic flows
Gain/loss on equity and on sale of assets(b)
Net write-downs of assets
(including bad and doubtful debts)
Assets recognised for the first time
Liabilities recognised for the first time
Actuarial revaluations
Net foreign exchange gains
Net swap interest received
Market valuation of debt
Other economic revaluations(c)
Total other economic flows
Comprehensive result -
Total change in net worth
Net operating balance
Net acquisition of non-financial assets
Purchases of non-financial assets less Sales of non-financial assets less Depreciation plus Change in inventories plus Other movements in non-financial assets
Total net acquisition of non-financial assets
18,202
3,741
5,495
66,329
4,369
98,136
7,065
10,871
109,890
8,743
104,605
223,238
1,888
12,698
14,586
353,896
-31,810
2,262
-5,216
626
0
0
-10
0
755
-601
-2,184
-33,994
-31,810
11,949
379
5,495
725
344
7,144
18,201
3,779
5,558
67,850
4,428
99,816
7,301
12,258
115,215
9,140
108,667
233,022
2,081
8,152
10,233
362,630
-4,294
3,513
-5,369
658
0
0
90
-151
0
0
-1,259
-5,553
-4,294
10,213
1,048
5,558
441
52
4,101
18,402
3,825
5,725
70,604
4,587
103,144
7,552
12,421
120,755
9,442
115,009
245,207
2,267
8,168
10,436
378,759
3,889
7,669
-5,494
692
0
0
118
-174
0
0
2,810
6,699
3,889
9,284
4,705
5,725
517
-218
-846
18,833
3,942
5,854
75,894
4,740
109,264
7,818
12,415
124,712
9,574
122,635
256,921
2,413
6,881
9,294
395,712
9,437
3,583
-5,785
727
0
0
122
-82
0
0
-1,435
8,001
9,437
8,919
453
5,854
497
-16
3,092
Fiscal balance (Net lending/borrowing)(d) -38,955 -8,395 4,735 6,345
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(c) Largely reflects other revaluation of assets and liabilities.
(d) The term fiscal balance is not used by the ABS.
19

Economic Statement
Table A2: Australian Government general government sector balance sheet
Estimates
2010-11 2011-12
$m $m
Projections
2012-13 2013-14
$m $m
Assets
Financial assets
Cash and deposits
Advances paid
Investments, loans and placements
Other receivables
Equity investments
Investments in other public sector entities
Equity accounted investments
Investments - shares
Total financial assets
2,529
25,438
100,699
35,778
28,146
260
26,816
219,666
2,452
26,327
102,376
37,282
33,054
259
23,489
225,240
2,682
27,225
100,592
39,082
39,686
258
24,145
233,668
2,826
27,945
96,045
41,257
44,411
257
25,306
238,047
Non-financial assets
Land 8,326
Buildings
Plant, equipment and infrastructure
Inventories
21,882
50,176
7,015
Intangibles
Investment property
Biological assets
Heritage and cultural assets
Assets held for sale
Other non-financial assets
Total non-financial assets
Total assets
5,068
182
33
9,106
106
2,917
104,811
324,477
Liabilities
Interest bearing liabilities
Deposits held
Government securities
Loans
Other borrowing
Total interest bearing liabilities
Provisions and payables
Superannuation liability
Other employee liabilities
Suppliers payable
Personal benefits payable
Subsidies payable
Grants payable
Other provisions and payables
Total provisions and payables
Total liabilities
230
198,142
10,156
919
209,447
127,116
10,203
5,062
12,541
2,231
7,860
11,872
176,884
386,332
8,225
22,654
53,250
7,079
5,323
182
34
9,119
88
2,993
108,947
334,187
230
209,435
9,887
819
220,372
131,419
10,481
5,109
12,813
2,368
7,857
11,177
181,224
401,595
8,204
23,351
55,232
7,338
5,678
182
34
9,130
102
2,940
112,191
345,860
230
209,452
9,778
717
220,177
135,755
10,766
5,135
13,381
2,517
8,041
10,797
186,392
406,569
8,111
23,815
57,407
7,533
5,528
182
34
9,143
85
3,083
114,921
352,968
230
203,254
9,686
623
213,792
140,113
11,060
5,231
13,851
2,662
8,288
10,681
191,884
405,676
Net worth(a) -61,855 -67,408 -60,710 -52,708
Net financial worth(b) -166,666 -176,355 -172,901 -167,630
Net financial liabilities(c) 194,811 209,410 212,586 212,040
Net debt(d) 80,782
(a) Net worth is calculated as total assets minus total liabilities.
89,217 89,679 86,977
(b) Net financial worth equals total financial assets minus total liabilities. That is, it excludes non-financial assets.
(c) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(d) 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.
20

Economic Statement
Table A3: Australian Government general government sector cash flow statement
(a)
Estimates Projections
2010-11
$m
2011-12
$m
2012-13
$m
2013-14
$m
Cash receipts from operating activities
Taxes received
Receipts from sales of goods and services
Interest receipts
Dividends and income tax equivalents
Other receipts
Total operating receipts
294,645
7,986
5,049
2,164
4,551
314,395
330,453
8,200
4,927
1,444
4,759
349,784
354,392
8,089
4,777
1,418
5,177
373,851
376,049
8,038
4,789
2,063
5,269
396,208
Cash payments for operating activities
Payments for employees
Payments for goods and services
Grants and subsidies paid
Interest paid
Personal benefit payments
Other payments
Total operating payments
-24,787
-66,626
-130,216
-9,238
-104,906
-3,954
-339,727
-24,995
-67,879
-132,088
-10,207
-108,386
-4,036
-347,592
-25,476
-70,790
-26,256
-76,110
-138,063 -140,870
-10,367 -10,068
-114,445 -122,191
-4,159 -4,303
-363,302 -379,798
-25,332 2,192 10,550 16,410 Net cash flows from operating activities
Cash flows from investments in
non-financial assets
Sales of non-financial assets
Purchases of non-financial assets
Net cash flows from investments in
non-financial assets
Net cash flows from investments in financial assets for policy purposes
Cash flows from investments in financial assets for liquidity purposes
Increase in investments
Net cash flows from investments in financial assets for liquidity purposes
Cash receipts from financing activities
Borrowing
Other financing
Total cash receipts from financing activities
Cash payments for financing activities
Borrowing
Other financing
Total cash payments for financing activities
Net cash flows from financing activities
Net increase/(decrease) in cash held
379
-12,314
-11,935
-10,636
7,264
7,264
40,777
0
40,777
0
-12
-12
40,766
126
1,048
-10,389
-9,342
-4,877
1,673
1,673
10,704
0
10,704
0
-428
-428
10,276
-78
4,705
-9,196
-4,492
-6,326
1,397
1,397
-435
-464
-899
-899
230
0
0
0
453
-9,038
-8,585
-4,376
3,995
3,995
-6,994
-305
-7,299
0
0
0
-7,299
144
21

Economic Statement
Table A3: Australian Government general government sector cash flow statement (continued)
(a)
Estimates Projections
2010-11
$m
2011-12
$m
2012-13
$m
2013-14
$m
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
Finance leases and similar arrangements(b)
-37,267
-163
-7,149
0
6,058
0
7,825
0
GFS cash surplus(+)/deficit(-) less Future Fund earnings
Equals underlying cash balance(c) plus Net cash flows from investments in
financial assets for policy purposes
-37,431
2,921
-40,351
-7,149
2,892
-10,041
6,058
2,925
3,134
7,825
3,022
4,803
-10,636 -4,877 -6,326 -4,376 plus Future Fund earnings 2,921 2,892 2,925 3,022
Equals headline cash balance -48,067 -12,026 -267 3,449
(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 balance.
(c) The term underlying cash balance is not used by the ABS.
22