The headline budget surplus of $0.5 billion in 1996-97 implies a gross Commonwealth financing requirement (allowing for maturing debt and net payments associated with PTE superannuation) of $6 billion. Further details of the Commonwealth’s budget financing and debt management strategy are provided in Statement 5.
Chart 6 shows that since 1992-93 the Commonwealth’s net financing requirement has been markedly reduced due in part to asset sales and repayment of State debt. The Commonwealth general government call on financial markets has been reduced from over 3.9 per cent of GDP in 1992-93 to 0.2 per cent of GDP in 1996-97. From 1997-98 the Commonwealth general government is expected to move into significant surplus (of 1 per cent of GDP) which is expected to continue into the forward years. The State/local general government sector as a whole is expected to be repaying debt over the forward years.
Analysis of the financial position of all components of the public sector is given in Statement 6.
