Document Index Budget Paper 3

Preface

• Relationship with Other Budget Papers and Terminology
• Parameter Estimates Used in this Paper
• Further Information
• Style Conventions

This Budget Paper presents information on the Commonwealth Government's financial relations with State, Territory and local governments.

Figures for 1998-99 and 1999-2000 are estimates.

Relationship with Other Budget Papers and Terminology

Chapter I of this Paper examines trends in the States' cash underlying deficits. This measure approximates the national accounts net lending measure and hence provides an estimate of the savings-investment gap for the relevant sector. Data on the Commonwealth's underlying cash position is provided in Statement 1 of Budget Paper No. 1. As explained in Statement 9 of Budget Paper No. 1, the definition of the underlying deficit differs from the Australian Bureau of Statistics' (ABS) definition of the adjusted deficit in the treatment of provisions.

Appendix A to this Paper provides information on the level and interstate distribution of specific purpose payments, repayments of advances, advances and interest payments. Information on the level and interstate distribution of Commonwealth payments to local government authorities is also included.

Appendix B to this Paper provides a copy of the historic Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations signed by all Heads of Governments at the 1999 Premiers' Conference.

Parameter Estimates Used in this Paper

Table 1 sets out the population series and index factors used in this Budget Paper.

Table 1: Parameters

The population series that underlie per capita estimates in this Budget Paper for 1998-99 and 1999-2000 are projections at 31 December 1998 and 31 December 1999 respectively. These projections were prepared by the ABS and are on the basis of assumptions agreed to by the Treasury. The index factors for population in 1998-99 and 1999-2000 are based on the estimated annual growth in the Australian population to 31 December 1998 and 31 December 1999 respectively.

The index factors for prices in 1998-99 and 1999-2000 are based on estimated year-average growth in the headline consumer price index (CPI) in the year to the March quarter 1999 and in the year to the March quarter 2000, respectively.

Further Information

A number of ABS publications also provide information that is relevant to analysing Commonwealth financial relations with other levels of Government, including:

Government Financial Estimates, Australia (Cat. No. 5501.0);

• Taxation Revenue, Australia (Cat. No. 5506.0);
• Government Finance Statistics, Australia (Cat. No. 5512.0);
• Public Sector Financial Assets and Liabilities, Australia (Cat. No. 5513.0);
• Government Finance Statistics -- Concepts, Sources and Methods (Cat. No. 5514.0); and
• Information Paper: Developments in Government Finance Statistics, Australia (Cat. No. 5516.0).

Some of the data presented in this Paper are drawn from ABS government finance statistics (preliminary) data and the Commonwealth Grants Commission's Report on General Revenue Grant Relativities 1999.

Style Conventions

The following style conventions are employed in this Paper.

• The Australian Capital Territory and the Northern Territory are referred to as `the Territories'. References to the `States' or `each State' include the Territories.
• The State and local government sector is denoted as the `State/local sector'. References to the `State/local sector' include the Australian Capital Territory and the Northern Territory unless otherwise stated.
• Figures in tables, and generally in the text, have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts and not the rounded amounts.
• The following notations are used in the tables.
  
  

  	na	not applicable
  	0	zero
  	..	not zero, but rounded to zero
  	-	indicating negative amounts

• The following abbreviations are used for the names of the States, where appropriate, in tables:
  
  

  	NSW	New South Wales
  	VIC	Victoria
  	QLD	Queensland
  	WA	Western Australia
  	SA	South Australia
  	TAS	Tasmania
  	ACT	Australian Capital Territory
  	NT	Northern Territory

Budget Paper No. 3 is one of a series of Budget Papers, the purpose of which is to provide information supplementary to that in the Budget Speech. A full list of the series is printed on the inside cover of this Paper.