BP1ST2 - APPENDIX D: 1997-98 BUDGET CLASSIFICATION CHANGES

APPENDIX D: 1997-98 BUDGET CLASSIFICATION CHANGES

This appendix discusses reporting classifications, and the impact of reclassifications for the 1997-98 Budget figuring.

Information in the budget papers is classified in three ways:

the functional classification brings together outlays directed towards like objectives or purposes. It thus facilitates presentation of information on the basic purposes of Government activities and on the total resources devoted by the Commonwealth to those purposes;
the economic type classification is designed to facilitate the study of the economic impact of Commonwealth transactions and to provide the means of grouping transactions for inclusion in ABS Government Finance Statistics and the Australian National Accounts. This classification scheme defines the concepts of outlays, revenue, financing transactions and the budget balance. Outlays are further divided into current and capital classifications; and
the portfolio classification refers to the aggregation of outlays according to the Minister who has prime administrative responsibility. Because portfolio responsibilities change over time, it is not possible to provide information in an historical series.

Classification Changes for the 1997-98 Budget

Classification changes can affect historical reporting. Comparisons between budget publications from different years can therefore be misleading. All changes to the application of the functional and economic type classifications for the 1997-98 Budget are outlined in Table D1 and Table D2. As can be seen from these tables, historical data published in this document is broadly consistent with previous publications. A list of changes is provided in the footnotes.

Table D1: Effect of Reclassification by Function for 1997-98 Budget ($m)

(a) Reclassification of Greenhouse research from General Research to Housing and Community Amenities (Environment Protection).

(b) Comcare Premiums and Benefits reclassified from Financing Transactions to General Services.

(c) Payments to SA and Tasmanian Rail Pensioners and ANRC contributions to former SA Rail and Tas Rail reclassified from Government Superannuation Benefits to Financing Transactions.

(d) John Curtin School of Medical Research reclassified from Health to Education.

(e) Youth Training Allowance reclassified from Labour and Employment Affairs to Social Security and Welfare.

(f) Payment to NSW Royal Agricultural Society Site reclassified from General Purpose Inter-Government Transactions to Recreation and Culture. Also, various running costs on communication transferred from Transport and Communications to Recreation and Culture (Broadcasting).

(g) Australian Competition and Consumer Commission and Trade Practices Commission miscellaneous receipts reclassified from Other Economic Affairs to Revenue due to their regulatory nature.

(h) All the above headline outlay reclassifications also affect underlying outlays. Also, the reclassification of a $45 million payment from grants to advances in 1994-95 is an additional effect on underlying outlays.

Table D2: Effect of Reclassification by Economic Type for 1997-98 Budget ($m)

(a) - Payment to SA and Tas Rail Pensioners and ANRC contribution to former SA and Tas rail reclassified to Financing Transactions.

- Council Grants - Territories reclassified as Current Grants.

- Australian Competition and Consumer Commission receipts and Trade Practices Commission receipts reclassified as Revenue due to their regulatory nature.

- Comcare Premiums and Benefits reclassified from Financing Transactions to General Services.

(b) Payment to Air Services Australia and Aviation Fuel Revenue reclassified to Current Grants.

(c) Payment to New South Wales for Fox Film Studio and payment to New South Wales for Royal Agricultural Society Site reclassified as Capital Transfer Payments.

(d) An asset sale incorrectly classified as Final Consumption Expenditure.

(e) Equity in Multimedia Enterprise reclassified to Advances.

(f) All the above headline outlay reclassifications also affect underlying outlays. Also, the reclassification of a $45 million payment from grants to advances in 1994-95 as mentioned in (e) above is an additional effect on underlying outlays.