CHAPTER 11: GOVERNMENT FINANCE
STATISTICS AND
UNIFORM REPORTING
FRAMEWORK
11.1
INTRODUCTION
This chapter1 presents financial aggregates for the General Government and
Public Trading Enterprise Sectors according to internationally recognised
statistical standards and in accordance with a revised uniform reporting
framework agreed at the 1997 Premiers' Conference. The new, enhanced
reporting arrangements involve, among other things, the provision of 4 year
forward estimates for the General Government Sector.
The financial aggregates presented in this Budget Paper serve a number of
purposes including:

allowing interstate comparisons on a consistent basis;

facilitating time series comparisons since they are relatively unaffected
by changes in public sector administrative structures; and

permitting an assessment of the impact of NSW Public Sector
transactions on the economy by providing data classified by economic
type.
1 New South Wales Treasury acknowledges the assistance of the Sydney and Canberra offices of
the Australian Bureau of Statistics in the preparation of this Chapter.
Budget Statement 1999-2000
11 - 1
Outlay and revenue data presented in this Chapter are provided on two
separate bases. Section 11.3 provides information which excludes selected
Commonwealth payments which pass through the State’s accounts. While
the exclusion of these payments is considered to provide a fairer
representation of State finances, section 11.4 provides information on a
standard ABS basis in accordance with the requirements of the 1997
Premiers' Conference agreement.
Section 11.5 presents estimates of the State’s Loan Council Allocation
(LCA) for 1998-99 and 1999-2000.
11.2
CLASSIFICATION FRAMEWORK
INTRODUCTION
The economic type classification adopted in this Budget Paper closely
follows international conventions as outlined in the ABS publication,
"Government Finance Statistics Australia - Concepts, Sources and Methods,
1994", Catalogue Number 5514.0.
Classification of Public Sector Entities
Public sector entities in New South Wales can be classified as General
Government Enterprises (GGEs), Public Trading Enterprises (PTEs) or
Public Financial Enterprises (PFEs).
GGEs consist of those public sector entities which provide, in the main,
goods and services outside the market mechanism as well as providing for
the transfer of income for public policy purposes. The major form of
financing of these goods and services is by taxation, imposed by the State or
by the Commonwealth and subsequently on passed to the State. In New
South Wales most government departments and a number of statutory
authorities (for example Sydney Harbour Foreshore Authority) fit into this
category.
In contrast, PTEs charge for services provided and hence have a broadly
commercial orientation. They do not, however, necessarily operate in
competitive markets. While PTEs are not required to be fully self funding, a
11 - 2
Budget Statement 1999-2000
substantial portion of their costs must be met by user charges. The PTE
sector in New South Wales includes Pacific Power, Sydney Water
Corporation and the State Rail Authority.
PFEs are the third category of authorities in the ABS framework. Treasury
Corporation is the major entity in New South Wales operating in this sector.
PFEs are not included in this chapter as data is only published on an
“actuals” basis for this sector.
Economic Type Classification
Transactions of public entities can be placed into one of four major
economic categories, these categories being subdivided into approximately
150 groups. The four major categories are current outlays, capital outlays,
revenue and grants received, and financing transactions.
Current Outlays
Current outlays consist of final consumption expenditure and current
transfer payments.
Final consumption expenditure is recorded only for the general government
sector. This is due to the convention of valuing the services produced by
general government on the basis of the costs incurred in providing these
services, less any revenues from sales. In effect, the general government
sector is treated as both a producer and a consumer of publicly provided
goods and services on behalf of the community. For other sectors of the
economy, consumption expenditure is allocated to the end user. In the case
of the public trading enterprise sector, net receipts from the purchases and
sales of goods and services are classified within the revenue and grants
received category. The placement of these transactions in this category
reflects these authorities being considered producers of goods and services,
with consumption of these services recorded in the private sector.
Transfer payments cover transactions such as interest payments, subsidies,
personal benefit payments and grants. In these cases there is no exchange of
ownership of goods and services. While transfer payments are a very
Budget Statement 1999-2000
11 - 3
important part of Commonwealth Government current outlays, this is not
the case at the State level.
Capital Outlays
Capital outlays can be divided into capital expenditure and capital transfer
payments.
Capital expenditure represents expenditure on durable goods intended to be
employed in the production process and providing services for longer than
one year, net purchases of land and intangible assets and increases in stocks.
The sale of fixed assets is offset against expenditure.
Capital transfer payments are mainly in the form of grants.
Revenue and Grants Received
Within the revenue and grants category, an important distinction needs to be
made between taxes and fines and other forms of revenue.
Taxes are compulsory levies imposed by government in order to raise
general revenue. As such, there is no linkage between the payment of tax
and the provision of goods and services. Taxes should be distinguished
from user charges in which there is a clear linkage between the provision of
goods and services and the payment of the charge. Examples of user
charges include electricity, water and public transport charges.
A major sub-category within revenue and grants received is the net
operating surplus of public trading enterprises. It should be noted that
interest paid is classified as a current outlay while interest received is
classified to its own sub-category within revenue and grants received. As
interest paid generally exceeds interest received, the net operating surplus of
public trading enterprises is substantially higher than the operating surplus
recorded by the authorities concerned in their annual reports. Furthermore
subsidies received by public trading enterprises are recorded in this
publication as operating revenue.
11 - 4
Budget Statement 1999-2000
Financing Transactions
In contrast to outlays and revenue, financing transactions involve changes in
financial assets and liabilities and, as such, can be considered 'below the
line' items. Total financing transactions are defined as current and capital
outlays less revenue and grants received.
Within this Budget Paper financing transactions have been divided into five
categories:

net advances received;

net advances paid;

net borrowings;

increases in provisions; and

other financing transactions.
The deficit is defined as the difference between outlays and revenues after
deducting any increases in provisions. It represents the call on savings by
the public sector (including the call on the savings of the Commonwealth).
Within the deficit a distinction can be made between that part which results
from current outlays and revenues and that part which results from capital
outlays and revenues. The operating deficit is calculated as current outlays
less both current revenues and increases in provisions. The capital deficit is
calculated as capital outlays less capital revenues (including Commonwealth
capital grants).
Budget Statement 1999-2000
11 - 5
11.3
DETAILED GOVERNMENT FINANCE
STATISTICS RESULTS ON A
TREASURY BASIS
TREASURY BASIS
The standards applied to produce estimates of outlays and revenues in this
section are the same as those used by the ABS in its Government Financial
Estimates publication (Catalogue No. 5501.0), but with two exceptions:

Commonwealth payments where the State acts merely as an agent; and

premiums on loans.
Treatment of Certain Commonwealth Payments
For certain Commonwealth payments (eg non-government schools and local
government tax sharing and road funding), the State essentially acts as an
agent of the Commonwealth.
Despite the fact that the State has no control over these payments and is not
involved in any negotiations concerning them, GFS conventions require
their inclusion in the State sector.
While the inclusion of these payments does not distort the underlying
financial position, the growth in expenditure in these areas can be
significantly different compared with that of the remainder of the State
sector.
In light of these considerations, certain Commonwealth grants classified as
passing through (rather than to) the State in the Commonwealth Budget are
excluded from the tables in section 11.3.
Loan Premiums
Current ABS statistical standards require a premium on a loan to be
classified as a negative interest payment in the year the loan is raised. New
South Wales disagrees with this approach since it results in an asymmetric
11 - 6
Budget Statement 1999-2000
treatment with discounts on loans which are treated as a balloon interest
payment on the maturity of the loan.
The position put by New South Wales can be illustrated by considering a par
loan to be made up of two loans, one at a discount and one at a premium.
Under the ABS approach the transactions recorded under GFS standards
result in a difference in the timing of interest payments between the par loan
and the combined premium-discount loan. To avoid this problem, New
South Wales has proposed recording the premium as a negative interest
payment in the final year of the loan.
While strict accordance with GFS standards requires the ABS approach to
be adopted for the estimates in this section, the ABS has recognised the
accounting difficulties of this approach. Given this, a compromise has been
reached on this issue which involves all jurisdictions and the ABS departing
from GFS principles on this matter.
CONSERVATIVE BIAS IN PUBLIC TRADING
ENTERPRISE RESULTS
There is evidence of a conservative bias in estimates of the PTE sector
financial results. Table 11.1 indicates that the financial result of PTE sector
has been conservatively forecast in each of the past 7 years, with the
exception of 1998-99. Given this, the actual result for this sector in 19992000 may well be better than projected.
Comparison of Estimated and Actual Financial Results(1)
1992-93
1993-94
1994-95
1995-96
1996-97(3)
1997-98
1998-99
1.
2.
3.
4.
Estimated(2)
Actual
$m
$m
$m
31
442
(41)
(86)
465
(136)
(30)
448
441
312
509
1,166
170
(57)
417
(1)
353
595
701
306
(27)
(4)
Forecast Error
A positive number represents a surplus.
The estimated results have been adjusted for a number of reclassification changes.
The 1996-97 outcome is affected by the decision to provide substantial increases in funding to the rail sector
of around $200 million.
Revised estimate as at June 1999.
Budget Statement 1999-2000
11 - 7
11-8
DETAILED GOVERNMENT FINANCE STATISTICS ESTIMATES - 1994-95 TO 1999-2000
Table 11.1: General Government Sector - Outlays, Revenue and Financing Transactions
1994-95
1995-96
1996-97
1997-98
$m
$m
$m
$m
17,819
13,765
4,055
1,721
463
1,258
1,256
611
645
125
48
906
18,325
14,485
3,840
1,729
381
1,348
957
528
429
136
52
966
19,767
15,684
4,083
1,429
328
1,101
1,247
933
315
150
52
1,205
20,971
16,485
4,486
1,538
342
1,196
1,277
939
338
267
61
1,342
25,461
20,937
4,523
1,395
106
1,289
1,457
1,009
448
295
62
1,314
21,468
17,124
4,345
1,271
108
1,163
1,240
927
314
306
89
1,439
2,941
2,087
2,039
48
4
(411)
130
541
1,262
132
1,052
77
3,175
(4,410)
1,952
(6,362)
3
(1,848)
112
1,960
9,431
8,181
1,151
98
3,317
2,241
2,364
(123)
...
84
139
56
993
147
743
103
3,188
2,120
2,369
(249)
...
(7)
160
167
1,075
158
735
182
3,602
2,407
2,385
22
...
28
291
263
1,167
205
843
119
3,326
2,389
2,642
(253)
...
(167)
156
323
1,104
177
796
130
ECONOMIC TYPE CLASSIFICATION
Current Outlays
General government final consumption expenditure
Current transfer payments
Interest payments
- On Commonwealth advances
- Other
Subsidies paid to enterprises
- Subsidies paid to public trading enterprises
- Subsidies paid to other enterprises
Personal benefit payments
Current grants to local government
Other current transfer payments
Capital Outlays
Budget Statement
Gross fixed capital expenditure
- Expenditure on new fixed assets
- Sales of fixed assets and previously rented dwellings
Increase in stocks
Expenditure on land and intangible assets
- Purchase of land and intangible assets
- Sales of land and intangible assets
Capital transfer payments
- Capital grants to local government
- Capital grants to state public trading enterprises
- Other capital grants and transfer payments
1998-99
Revised
$m
1999-2000
Estimate
$m
Budget Statement
Table 11.2:
General Government Sector - Outlays, Revenue and Financing Transactions (cont’)
1994-95
1995-96
1996-97
1997-98
$m
$m
$m
$m
20,171
10,080
2,174
1,033
25
461
634
21
7,917
6,890
6,890
...
1,027
1,016
12
21,354
10,744
2,352
1,008
67
555
704
17
8,258
7,339
7,339
...
919
919
...
23,235
11,811
2,867
1,393
48
636
782
8
8,558
7,480
7,470
9
1,078
832
246
24,130
12,908
2,632
1,359
37
439
784
14
8,589
7,638
7,637
1
951
725
227
26,177
14,161
2,669
1,268
40
450
902
8
9,347
8,120
8,117
4
1,227
835
392
25,987
14,012
2,470
1,151
21
377
875
46
9,506
8,616
8,611
5
890
784
105
589
(673)
(673)
(1)
527
851
(116)
147
(388)
(389)
1
1,776
(887)
(354)
(151)
(458)
(458)
...
518
(121)
(90)
29
(1,568)
(1,541)
(27)
1,128
793
(324)
2,885
(67)
(50)
(18)
18
2,745
189
(1,193)
(167)
(114)
(54)
(60)
(1,528)
562
589
(1,303)
1,892
147
(2,092)
2,239
(151)
(2,382)
2,232
29
(2,193)
2,223
2,885
519
2,367
(1,193)
(3,584)
2,391
589
147
(151)
29
(382)
(214)
ECONOMIC TYPE CLASSIFICATION
Revenue and Grants Received
Taxes
Property income and other revenue
- Income from public trading enterprises
- Income from public financial enterprises
- Interest received
- Other property income and other current revenue
- Capital revenue
Grants received
- Current grants received
- From Commonwealth
- Other
- Capital grants received
- From Commonwealth
- Other
Financing Transactions
Net advances received
- From Commonwealth
- Other
Net advances paid
Net domestic and overseas borrowings
Other financing transactions
Deficit/(Surplus)(1)
- Operating result
- Capital result
Adjusted Deficit/(Surplus)(2)
11-9
(1) Financing Transactions minus Increase in Provisions
(2) Adjusted for effects of superannuation conversion offer
1998-99
Revised
$m
1999-2000
Estimate
$m
... Nil or less than $500,000
11-10
DETAILED GOVERNMENT FINANCE STATISTICS ESTIMATES - 1994-95 TO 1999-2000
Table 11.2: Public Trading Enterprise Sector - Outlays, Revenue and Financing Transactions
1994-95
1995-96
1996-97
1997-98
$m
$m
$m
$m
ECONOMIC TYPE CLASSIFICATION
Current Outlays
Current Transfer Payments
Interest payments
Income transferred by public trading enterprises
Other current transfer payments
Capital Outlays
Gross fixed capital expenditure
- Expenditure on new fixed assets
- Net expenditure on secondhand fixed assets
Increase in stocks
Expenditure on land and intangible assets
- Purchase of land and intangible assets
- Sales of land and intangible assets
Capital transfer payments
- Capital grants to local government
- Other capital grants and transfer payments
1998-99
Revised
$m
1999-2000
Estimate
$m
2,144
2,144
965
1,024
154
2,075
2,075
922
1,003
149
2,461
2,461
942
1,392
127
2,394
2,394
886
1,355
152
2,080
2,080
804
1,248
29
1,923
1,923
773
1,097
53
2,453
2,472
2,671
(199)
15
(70)
152
222
36
4
32
2,072
2,208
2,401
(192)
(58)
(105)
77
182
27
...
27
1,276
1,285
1,968
(683)
27
(293)
61
354
257
10
246
2,048
1,820
2,006
(187)
188
(197)
81
278
238
5
233
2,338
2,096
2,596
(499)
188
(333)
59
392
388
...
388
3,055
2,571
2,782
(210)
539
(138)
138
276
83
...
83
Budget Statement
Budget Statement
Table 11.3:
Public Trading Enterprise Sector - Outlays, Revenue and Financing Transactions (cont’)
ECONOMIC TYPE CLASSIFICATION
Revenue and Grants Received
Net operating surplus of PTEs
- Operating revenue
- Charges for goods and services
- Subsidies received
- Operating expenditure
- Depreciation charges
- Other operating expenditure
Property income and other revenue
- Interest received
- Other property income and other current revenue
- Capital revenue
Grants received
- Capital grants received
- From state general government sector
- Other
Financing Transactions
Net advances received
- From state general government sector
- Other
Net advances paid
Net domestic and overseas borrowings
Increase in provisions (net)
Other financing transactions
Deficit/(Surplus)(1)
- Operating Result
- Capital Result
11-11
(1) Financing Transactions minus Increase in Provisions
1998-99
Revised
$m
1999-2000
Estimate
$m
1994-95
1995-96
1996-97
1997-98
$m
$m
$m
$m
3,226
1,586
12,377
11,807
570
10,791
1,868
8,923
518
186
2
330
1,122
1,122
1,059
64
2,697
1,173
12,198
11,703
495
11,026
1,753
9,272
364
200
1
162
1,160
1,160
1,151
10
3,550
2,467
13,809
12,898
910
11,341
1,418
9,923
342
208
1
133
741
741
741
...
3,350
2,312
13,363
12,385
977
11,051
1,416
9,635
354
157
2
196
684
684
684
...
2,584
1,389
12,918
11,922
996
11,529
1,430
10,099
353
106
38
209
842
842
842
...
2,654
1,540
13,396
12,518
878
11,856
1,488
10,367
326
87
42
198
787
787
787
...
1,370
(5)
(5)
...
...
(412)
1,683
104
1,449
(1,698)
(1698)
...
...
1,487
1,958
(298)
187
(345)
(345)
...
...
(618)
1,353
(203)
1,092
(245)
(244)
(1)
...
(44)
1,262
119
1,835
(47)
(44)
(3)
...
(247)
1,777
352
2,324
(40)
(40)
...
19
247
2,073
25
(312)
(1,313)
1,000
(509)
(1,258)
749
(1,166)
(1,568)
402
(170)
(1,339)
1,169
57
(1,230)
1,288
251
(1,819)
2,071
... Nil or less than $500,000
11-12
DETAILED GOVERNMENT FINANCE STATISTICS ESTIMATES - 1994-95 TO 1999-2000
Table 11.3: Total Non Financial Sector - Outlays, Revenue and Financing Transactions
ECONOMIC TYPE CLASSIFICATION
Current Outlays
General government final consumption expenditure
Current transfer payments
Interest payments
- On Commonwealth advances
- Other
Subsidies paid to enterprises
Personal benefit payments
Current grants to local government
Other current transfer payments
Capital Outlays
Budget Statement
Gross fixed capital expenditure
- Expenditure on new fixed assets
- Net expenditure on secondhand fixed assets
Increase in stocks
Expenditure on land and intangible assets
- Purchase of land and intangible assets
- Sales of land and intangible assets
Capital transfer payments
- Capital grants to local government
- Other capital grants and transfer payments
1994-95
1995-96
1996-97
1997-98
1998-99
Revised
$m
1999-2000
Estimate
$m
$m
$m
$m
$m
18,856
13,765
5,092
2,603
463
2,140
1,256
125
48
1,060
19,315
14,485
4,830
2,570
381
2,188
957
136
52
1,115
20,767
15,684
5,083
2,301
328
1,974
1,247
150
52
1,332
21,939
16,485
5,454
2,354
342
2,012
1,277
267
61
1,494
26,222
20,937
5,285
2,135
106
2,029
1,457
295
62
1,336
22,197
17,124
5,074
1,979
108
1,872
1,240
306
89
1,459
4,331
4,559
4,710
(152)
19
(481)
282
764
235
136
98
4,095
(2,202)
4,353
(6,555)
(56)
(1,953)
189
2,142
8,306
8,181
125
3,603
3,526
4,332
(806)
27
(210)
201
411
260
157
103
4,265
3,940
4,375
(435)
188
(208)
240
448
345
163
182
4,710
4,503
4,980
(477)
188
(305)
349
655
325
205
119
5,502
4,960
5,423
(463)
539
(305)
295
600
308
177
130
Budget Statement
Table 11.4:
Total Non Financial Sector - Outlays, Revenue and Financing Transactions (cont’)
ECONOMIC TYPE CLASSIFICATION
Revenue and Grants Received
Taxes
Net operating surplus
Property income and other revenue
- Income from public financial enterprises
- Interest received
- Other property income and other current revenue
- Capital revenue
Grants received
- Current grants received
- From Commonwealth
- Other
- Capital grants received
- From Commonwealth
- Other
Financing Transactions
Net advances received
- From Commonwealth
- Other
Net advances paid (net)
Net domestic and overseas borrowings
Increase in provisions
Other financing transactions
Deficit/(Surplus)(1)
- Operating result
- Capital Result
Adjusted Deficit/(Surplus) (2)
11-13
(1) Financing Transactions minus Increase in Provisions
(2) Adjusted for effects of superannuation conversion offer
1994-95
1995-96
1996-97
1997-98
1998-99
Revised
$m
1999-2000
Estimate
$m
$m
$m
$m
$m
21,212
10,080
1,586
1,576
25
564
635
352
7,970
6,890
6,890
...
1,080
1,079
...
21,811
10,744
1,173
1,627
67
675
706
180
8,268
7,339
7,339
...
929
929
...
24,366
11,811
2,467
1,780
48
777
814
141
8,308
7,477
7,470
7
831
832
(1)
25,082
12,908
2,312
1,499
37
528
726
210
8,363
7,638
7,637
2
725
725
...
26,195
14,161
1,389
1,689
40
491
941
217
8,955
8,117
8,117
...
838
835
3
26,543
14,012
1,540
1,577
21
400
912
243
9,414
8,613
8,611
2
801
784
17
1,975
(673)
(673)
(1)
522
439
1,683
4
1,599
(389)
(389)
...
75
600
1,958
(645)
4
(458)
(458)
...
173
(739)
1,353
(325)
1,122
(1,569)
(1,541)
(28)
921
749
1,262
(241)
4,737
(71)
(50)
(21)
(26)
2,498
1,777
559
1,156
(168)
(114)
(54)
(97)
(1,281)
2,073
629
292
(2,607)
2,899
(359)
(3,346)
2,987
(1,349)
(3,980)
2,631
(140)
(3,471)
3,331
2,960
(695)
3,655
(916)
(5,374)
4,458
292
(359)
(1,349)
(140)
(307)
63
... Nil or less than $500,000
11.4
UNIFORM REPORTING FRAMEWORK
REQUIREMENTS
In accordance with the revised Uniform Reporting Framework agreed by the
1997 Premiers' Conference, Tables 11.5 through to 11.14 of this Section
provide estimates on a comparable basis to that published by the ABS.
General Government Sector - Outlays, Revenue and
Financing Transactions (ABS basis)
Current Outlays
Final Consumption
Expenditure
Interest Payments
Subsidies Paid to
PTEs and PFEs
Current Grants
Other Current
Payments
Total Current
Outlays
Capital Outlays
Gross Capital
Expenditure
New Fixed Capital
Expenditure
Expenditure on
Secondhand Assets
(net)
Capital Grants
Other Capital Outlays
Total Capital
Outlays
Total Outlays
11 - 14
1998-99
19992000
2000-01
2001-02
2002-03
Revised
Estimated
Estimated
Estimated
Estimated
$m
$m
$m
$m
$m
20,937
1,395
17,124
1,271
17,830
1,191
18,076
970
20,008
966
1,009
2,594
927
2,800
877
2,859
782
2,994
714
3,077
766
684
587
546
547
26,701
22,805
23,344
23,368
25,311
2,407
2,389
2,346
2,476
2,571
2,385
2,642
2,467
2,567
2,635
22
1,198
28
(253)
1,133
(167)
(121)
1,150
(36)
(91)
1,139
(84)
(64)
1,214
(34)
3,632
3,355
3,460
3,530
3,751
30,333
26,160
26,804
26,898
29,062
Budget Statement 1999-2000
Table 11.5: General Government Sector - Outlays, Revenue
and Financing Transactions (ABS basis) (cont’)
1998-99
19992000
2000-01
2001-02
2002-03
Revised
Estimated
Estimated
Estimated
Estimated
$m
$m
$m
$m
$m
14,161
450
10,618
14,012
377
10,872
14,387
393
11,148
14,825
401
11,481
15,409
410
11,698
1,308
1,172
1,301
1,305
1,366
911
920
945
943
944
27,448
27,353
28,174
28,955
29,828
(67)
18
(167)
(60)
(79)
41
(196)
24
(144)
77
2,745
(1,528)
(1,062)
(1,225)
(96)
...
...
...
...
...
189
562
(270)
(660)
(603)
2,885
(1,193)
(1,370)
(2,057)
(766)
...
...
...
...
...
2,885
(1,193)
(1,370)
(2,057)
(766)
(382)
(214)
(363)
(976)
(766)
12,896
11,883
10,513
8,481
7,757
9,632
9,632
9,334
8,481
7,757
Revenue
Taxes
Interest Received
Grants Received
Dividends Received
from PTEs and PFEs
Other Revenue
(incl Fines)
Total Revenue and
Grants Received
Financing
Transactions
Net Advances
Received
Net Advance Paid
Net Domestic and
Overseas Borrowings
Increase in Provisions
(net)
Other Financing
Transactions
Total Financing
Transactions
Less Increase in
Provisions
Deficit/(Surplus) (1)
Adjusted
Deficit/(Surplus) (2)
Net Debt
Net Debt Adjusted
for Superannuation
Conversion Offer
(1) Financing Transactions minus Increase in Provisions
(2) Adjusted for effects of superannuation conversion offer
Budget Statement 1999-2000
... Nil or less than $500,000
11 - 15
Public Trading Enterprises - Outlays, Revenue and Financing
Transactions (ABS basis)
1998-99
Revised
$m
1999-2000
Estimated
$m
Current Outlays
Interest Payments
Other Current Payments
804
1,277
773
1,150
Total Current Outlays
2,080
1,923
Capital Outlays
Gross Capital Expenditure
New Fixed Capital Expenditure
Expenditure on Secondhand Assets (net)
Capital Grants
Other Capital Outlays
2,096
2,596
(499)
388
(145)
2,571
2,782
(210)
83
401
Total Capital Outlays
2,338
3,055
Total Outlays
4,419
4,978
Revenue
Net Operating Surplus of PTEs
Interest Received
Grants Received
Other Revenue
1,389
106
842
247
1,540
87
787
239
Total Revenue and Grants Received
2,584
2,654
Financing Transactions
Net Advances Received
Net Advances Paid
Net Domestic and Overseas Borrowings
Increase in Provisions (net)
Other Financing Transactions
(47)
...
(247)
1,777
352
(40)
19
247
2,073
25
Total Financing Transactions
less Increase in Provisions (net)
1,835
1,777
2,324
2,073
57
251
7,539
8,009
Deficit
Net Debt
11 - 16
Budget Statement 1999-2000
Total Non-Financial Public Sector - Outlays, Revenue and
Financing Transactions
(ABS basis)
1998-99
Revised
$m
1999-2000
Estimated
$m
Current Outlays
Final Consumption Expenditure
Interest Payments
Current Grants
Other Current Payments
20,937
2,135
2,616
1,774
17,124
1,979
2,820
1,610
Total Current Outlays
27,462
23,534
Capital Outlays
Gross Capital Expenditure
New Fixed Capital Expenditure
Expenditure on Secondhand Assets (net)
Capital Grants
Other Capital Outlays
4,503
4,980
(477)
355
(118)
4,960
5,423
(463)
337
234
Total Capital Outlays
4,740
5,531
Total Outlays
32,203
29,065
Revenue
Taxes, Fees and Fines
Net Operating Surplus of PTEs
Interest Received
Grants Received
Other Revenue
14,161
1,389
491
10,225
1,198
14,012
1,540
400
10,779
1,177
Total Revenue and Grants Received
27,465
27,908
Financing Transactions
Net Advances Received
Net Advances Paid
Net Domestic and Overseas Borrowings
Increase in Provisions (net)
Other Financing Transactions
(71)
(26)
2,498
1,777
559
(168)
(97)
(1,281)
2,073
629
Total Financing Transactions
less Increase in Provisions (net)
4,737
1,777
1,156
2,073
Deficit/(Surplus)
Adjusted Deficit/(Surplus)
2,960
(307)
(916)
63
Net Debt
20,435
19,892
Net Debt Adjusted for
Superannuation Conversion Offer
17,171
17,641
Budget Statement 1999-2000
11 - 17
Table 11.4: General Government Sector - Current Outlays by
Function (ABS basis)
FUNCTION
General Public Services
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry, Fishing and Hunting
Mining Manufacturing and Construction
Transport and Communications
Other Economic Affairs
Other Purposes
Current Outlays
1998-99
Revised
$m
1999-2000
Estimated
$m
4,985
2,123
6,818
5,468
1,816
506
449
82
410
65
1,718
553
1,708
708
2,196
6,998
5,575
1,843
553
497
79
402
70
1,631
484
1,770
26,701
22,805
Table 11.5: General Government Sector - Capital Outlays by
Function (ABS basis)
FUNCTION
1998-99
Revised
$m
1999-2000
Estimated
$m
General Public Services
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry, Fishing and Hunting
Mining, Manufacturing and Construction
Transport and Communications
Other Economic Affairs
Other Purposes
110
262
267
264
29
952
312
61
34
5
1,289
29
20
36
302
306
435
37
536
359
49
33
2
1,322
(49)
(11)
Capital Outlays
3,632
3,355
11 - 18
Budget Statement 1999-2000
General Government Public Sector - Total Outlays by
Function (ABS basis)
FUNCTION
General Public Services
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry, Fishing and Hunting
Mining, Manufacturing and Construction
Transport and Communications
Other Economic Affairs
Other Purposes
Total Outlays
1998-99
Revised
$m
1999-2000
Estimated
$m
5,095
2,385
7,085
5,732
1,845
1,458
761
142
444
70
3,007
582
1,727
743
2,498
7,304
6,010
1,880
1,089
856
128
435
71
2,953
435
1,759
30,333
26,160
Table 11.6: Total Non-Financial Sector - Current Outlays by
Function (ABS basis)
FUNCTION
General Public Services
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry, Fishing and Hunting
Mining Manufacturing and Construction
Transport and Communications
Other Economic Affairs
Other Purposes
Current Outlays
Budget Statement 1999-2000
1998-99
Revised
$m
1999-2000
Estimated
$m
4,985
2,123
6,818
5,468
1,816
527
449
82
410
65
1,718
553
2,447
708
2,196
6,998
5,575
1,843
573
497
79
402
70
1,631
484
2,478
27,462
23,534
11 - 19
Table 11.7: Total Non-Financial Sector - Capital Outlays by
Function (ABS basis)
FUNCTION
1998-99
Revised
$m
1999-2000
Estimated
$m
General Public Services
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry, Fishing and Hunting
Mining, Manufacturing and Construction
Transport and Communications
Other Economic Affairs
Other Purposes
110
262
267
264
29
1,036
366
589
61
5
1,585
29
139
36
302
306
435
37
989
361
822
76
2
1,717
(49)
498
Capital Outlays
4,740
5,531
Total Non-Financial Sector - Total Outlays by Function (ABS
basis)
FUNCTION
General Public Services
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry, Fishing and Hunting
Mining, Manufacturing and Construction
Transport and Communications
Other Economic Affairs
Other Purposes
Total Outlays
1998-99
Revised
$m
1999-2000
Estimated
$m
5,095
2,385
7,085
5,732
1,845
1,563
815
671
471
70
3,303
582
2,586
743
2,498
7,304
6,010
1,880
1,563
858
901
478
71
3,347
435
2,977
32,203
29,065
Table 11.8: Taxes (ABS basis)
TAXES CLASSIFICATION
11 - 20
1998-99
1999-2000
Budget Statement 1999-2000
Payroll Tax
Taxes on Property
Land Tax
Stamp Duties on Financial and Capital Transactions
Financial Institutions Transaction Taxes
Other
Taxes on Provision of Goods and Services
Excises and Levies
Taxes on Gambling
Taxes on Insurance
Taxes on the Use of Goods and the Performance of Activities
Motor Vehicle Taxes
Franchise Taxes
Other
Total Taxes
Budget Statement 1999-2000
Revised
$m
Estimated
$m
3,611
4,476
958
2,616
876
26
2,349
37
1,419
893
3,725
1,489
1,971
265
3,637
4,223
859
2,433
905
26
2,495
29
1,558
908
3,656
1,388
1,993
276
14,161
14,012
11 - 21
11.5
LOAN COUNCIL REPORTING
REQUIREMENTS
Table 11.15 presents estimates of the State's Loan Council Allocation
(LCA) for 1998-99 and 1999-2000.
As confirmed at the 1997 Loan Council meeting, States are to report their
full contingent exposure to infrastructure projects with private sector
involvement. Exposure is to be measured by the government’s termination
liabilities and disclosed as a footnote to, rather than a component of, LCAs.
Overall, there is a negative Loan Council Allocation requirement of $279
million for New South Wales for 1999-2000.
Table 11.9: Loan Council Allocation Estimates
1998-99
Current
Estimate
$m
Non Financial Public Sector
Deficit/(Surplus) GFS Basis
Plus Net advances paid
Equals “Headline” Deficit/(Surplus)1
Memorandum Items:
Operating Leases
University Borrowings
Recourse asset sales
Local government financing requirement
Superannuation
Net financing requirement for statutory
marketing authorities
Home Finance Schemes
Loan Council Allocation
(1)
$m
1999-2000
Budget
Estimate
$m
2,960
(865)
(916)
26
19
97
2,986
(846)
(819)
157
10
...
280
(3,916)
(38)
10
…
280
149
(42)
10
...
280
355
...
(127)
…
(67)
...
(63)
(610)
(512)
(279)
1999-2000
Bid
Loan Council requires the Public sector result to be reported on the old “Headline” basis as used by the
Australian Bureau of Statistics prior to 1998. Under this approach net advances paid were classified as part of
capital outlays. The current GFS treatment of net advances paid as part of financing transactions has made
the “headline” concept redundant in GFS reporting.
11 - 22
Budget Statement 1999-2000
11.6
PRIVATE SECTOR INFRASTRUCTURE
PROJECTS
CONTRACTS SIGNED IN 1998-99
St George Hospital Car Park
Project Description:
International Parking (Randwick) Pty Limited has contracted to build, own
and operate and transfer back (BOOT) a 580 space multi storey car park at
the St George Hospital campus of the South Eastern Sydney Area Health
Service (SESAHS). The contract period is 25 years. The anticipated total
construction cost for the project, including capitalised interest is $13
million. The car park operator will manage and operate under licence the
whole campus car parking of 1,148 spaces, including the 580 new spaces.
The contract was signed in April 1999. No government liability arises
under the proposed termination provisions of the contract except following a
decision by SESAHS not to rebuild the car park in the event of its
destruction. In such a circumstance SESAHS would pay compensation to
IPR which would include a pro rata refund of licence fees and a termination
amount.
Under the termination arrangements, in the event of operator default which
is not rectified, the operator is required to sell and novate the car park
operator’s interest in the contract and the purchaser would obtain the rights
and assume the liabilities and obligations existing under the contract.
SESAHS is not obliged to assume responsibility for the operator’s payments
to the financiers.
The facility is wholly debt funded. The proposed term of the project (the
minimum period of the contract in which no penalties are incurred) is 25
years.
Government Contingent Liability
Budget Statement 1999-2000
nil
11 - 23
CONTRACTS TO BE ENTERED INTO IN 1999-2000
Royal Prince Alfred Hospital Car Park, Camperdown
Project Description:
It is proposed to invite the private sector to fund and build a new 950 space
car park on the Royal Prince Alfred Hospital campus over a contract period
of 25 years. The anticipated total construction cost for the project, including
capitalised interest is $12 million. The successful consortium’s car park
operator will manage and operate under licence or lease the whole campus
car parking of 1,150 spaces including the 950 new spaces.
The form of the arrangement is expected to be similar to that for the
Randwick and St George Hospital Car Parks. The expected sign up date is
June 2000. At this time no government liability is anticipated under the
proposed termination provisions of the contract to be negotiated. The
details are to be determined.
The facility is expected to be wholly debt funded. The proposed term of the
project (the minimum period of the contract in which no penalties are
incurred) is 25 years.
Government Contingent Liability
To Be Determined
Royal North Shore Hospital Car Park
Project Description:
A study is currently being undertaken into the feasibility of inviting the
private sector to build, own and operate and transfer back (BOOT) a 400
space car park at the Royal North Shore (RNS) Hospital campus. The
contract period would be for 25 years. The anticipated total construction
cost for the project, including capitalised interest is $6 million. The
operator would manage and operate under licence or lease the whole
campus car parking, including the 400 new spaces.
11 - 24
Budget Statement 1999-2000
The expected sign up date is June 2000. At this time no government
liability is anticipated under the proposed termination provisions of the
contract to be negotiated. The details are to be determined.
The Royal North Shore Hospital car park project is subject to the outcome
of a feasibility study and an economic appraisal and project parameters
could be subject to change.
Government Contingent Liability
To Be Determined
Inner West Light Rail Extension
Project Description:
The Ultimo Pyrmont Light Rail Transit system (UPLRT) operates between
Central Railway Station and Wentworth Park to serve the growing
residential, commercial and recreational areas of the Ultimo-Pyrmont
peninsula.
The Government has assessed a proposal submitted by the Sydney Light
Rail Company Limited (SLRC) to design, construct and operate extensions
to the UPLRT. An extension westward from Wentworth Park along the
disused railway line in a dedicated right of way through Glebe and North
Annandale terminating at the Catherine Street bridge in Lilyfield is
proposed. A contract is expected to be signed in August 1999.
The anticipated total construction cost is $20 million. The financing
arrangements and the Government liability under termination provisions of
the contract are yet to be finally determined. The project term is still under
negotiation. The current light rail project is 30.5 years.
Government Contingent Liability
Budget Statement 1999-2000
To Be Determined
11 - 25
Gerringong/Gerroa Sewerage Treatment Plants
Project Description:
The preferred option, announced in May 1999, will provide advanced
tertiary level treatment and reuse of treated effluent in adjacent areas.
Unused treated effluent will be released to sand dunes and artificial
wetlands on site.
An Environmental Impact Statement will be displayed by November 1999.
Construction should commence shortly thereafter.
The successful tenderer will finance, design and construct a system, which it
will then operate and maintain for 20 years.
The estimated cost for the scheme is approximately $20 million.
Government Contingent Liability
To Be Determined
Pedestrian Overbridges and Variable Message Signs
Project Description:
A program of installing 26 pedestrian overbridges and 130 variable Message
Signs (VMS) is under consideration by the Roads and Traffic Authority
(RTA). The RTA would sell controlled advertising rights in the road
reserves of State Roads for a period of up to 15 years in return for the
construction of the infrastructure by the private sector.
RTA will not guarantee or underwrite the revenue of the advertisers. The
bridges and the VMS will be the property of RTA immediately upon
completion but other details of the arrangement are still in the course of
negotiation. The total value of the program is estimated to be approximately
$50 million.
Government Contingent Liability
11 - 26
Nil
Budget Statement 1999-2000