Part II:  Government Finance Statistics Statements
The Commonwealth, States and Territories have an agreed framework — the Accrual Uniform Presentation Framework (UPF) — for the presentation of government financial information on a basis consistent with the ABS Government Finance Statistics (GFS) publication. This Part presents Commonwealth data on a GFS basis, as required by the UPF. An exception to this is the treatment of provisions for bad and doubtful debts. The draft ABS GFS publication (Australian System of Government Finance Statistics: Concepts, Sources and Methods Cat. No. 5514.0) requires that provisions for bad and doubtful debts be excluded from the balance sheet. This treatment has not been adopted because excluding such provisions would overstate the value of Commonwealth assets in the balance sheet (and would therefore be inconsistent with the market valuation principle).
The statistical tables that are presented below include an operating statement, balance sheet and cash flow statement for the Commonwealth general government, public non‑financial corporations (PNFC), total non‑financial public, and public financial corporations sectors.
The clear policy intent of the Intergovernmental Agreement on Commonwealth‑State Financial Arrangements is that GST is collected by the Commonwealth, as an agent for the States and Territories, and appropriated to the States. As such, it is not shown as Commonwealth revenue in Parts I and III and Appendices B and C. However, the tables in this Part are presented on an accrual UPF reporting basis, and show GST as revenue in and expenses out (except in tables 10 and 11).
Consistent with Australian Bureau of Statistics (ABS) practice, transactions between the Commonwealth general government and PNFC sectors are included in the tables produced for these sectors, but are removed from the total non‑financial sector tables as they are transactions internal to that sector.
Transactions between the Commonwealth public financial corporations (PFC) sector and the general government and PNFC sectors are included in the relevant tables. These transactions include income transfers such as dividends paid to general government, net advances paid by general government to PFCs and taxes paid by PFCs.
Appendix A provides reconciliations between key GFS aggregates and their Australian Accounting Standard No. 31 (AAS31) counterparts.

Table 7:  General government sector operating statement

(a)	GFS net lending also equals net transactions in financial assets less net transactions in liabilities. The term ‘fiscal balance’ is not used by the ABS.
(b)	The fiscal balance and net operating balance outcomes in this table are $63 million greater than the fiscal balance and net operating balance outcomes elsewhere in the Final Budget Outcome. Attachment A to Part I provides an explanation.

Table 8:  General government sector balance sheet

(a)	Transactions relating to government securities and financial assets acquired for debt management purposes are netted in the balance sheet and cash flows for the Budget estimates (refer to page 10‑15 of Budget Paper No. 1 2001‑02). These transactions are grossed up for outcome reporting.
(b)	Net worth is calculated as assets less liabilities.
(c)	The net worth outcome in this table is $63 million greater than the net worth outcomes elsewhere in the Final Budget Outcome. Attachment A to Part I provides an explanation.
(d)	Net financial worth equals total financial assets less total liabilities.
(e)	Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowings, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Table 9:  General government sector cash flow statement(a)

(a)	A positive number denotes a cash inflow, a negative sign denotes a cash outflow.
(b)	Includes GST cash receipts on a Commonwealth tax basis, which is $119 million less than GST cash receipts measured on a State tax basis (as shown in Part III, Note 15).
(c)	Where GST is accounted for as a Commonwealth revenue, GST receipts and payments related to purchases/sales are now eliminated where they were previously reported on a gross basis. As receipts and payments have both been reduced by an approximately equivalent amount, there is very little impact on the underlying cash balance.
(d)	Includes the reclassification of expenses from other payments for operating to payments for goods and services to better align with treatment by the ABS.
(e)	Includes the reclassification of expenses from salaries, wages and other entitlements to other payments for operating to better align with treatment by the ABS.
(f)	Transactions relating to government securities and financial assets acquired for debt management purposes are netted in the balance sheet and cash flows for the Budget estimates (refer to page 10‑15 of Budget Paper No. 1 2001‑02). These transactions are grossed up for outcome reporting.
(g)	The acquisition of assets under finance leases reduces the surplus/deficit.

Table 10:  Supplementary table — Commonwealth general government revenue(a)

(a)	Excludes GST revenue collected by the Commonwealth on behalf of the States.
(b)	Includes Medicare levy revenue. 
(c)	Includes superannuation contributions surcharge.
(d)	Includes amounts withheld for failure to quote a Tax File Number (TFN) or an Australian Business Number (ABN).
(e)	Indirect taxes exclude surcharge revenue raised by the Commonwealth on an agency basis and paid to the States and Territories as Revenue Replacement Payments (RRPs) in 2000‑01. While RRPs were abolished on 1 July 2000, the final RRP liability was collected and paid to the States in 2000‑01.
(f)	Includes the wine equalisation tax, luxury car tax and the final wholesale sales tax liability.
(g)	Consistent with GFS reporting standards, excludes fringe benefits tax collected from Commonwealth government agencies ($285 million in 2000‑01).

Table 11:  Supplementary table — Commonwealth general government indirect tax (accrual)(a)

(a)	Excludes surcharge revenue raised by the Commonwealth on an agency basis and paid to the States and Territories as RRPs in 2000‑01. While RRPs were abolished on 1 July 2000, the final RRP liability was collected and paid to the States in 2000‑01.
(b)	Includes aviation gasoline, aviation turbine fuel, fuel oil, heating oil and kerosene.
(c)	Customs duty includes duties imposed on imported petroleum products, tobacco, beer and spirits, which are analogous to excise duty on these items.
(d)	Estimates of WET revenue include the offsetting revenue effects of the WET rebate for cellar door and other sales.
(e)	WST was abolished on 1 July 2000; however, the final liability was recognised in 2000‑01.
(f)	Excludes GST revenue collected by the Commonwealth on behalf of the States.

Table 12:  Public non‑financial corporations sector operating statement

(a)	GFS net lending also equals net transactions in financial assets less net transactions in liabilities. The term ‘fiscal balance’ is not used by the ABS.

Table 13:  Public non‑financial corporations sector balance sheet

(a)	Net worth is calculated as assets less liabilities less shares and other contributed capital. The negative net worth recorded for this sector reflects a higher valuation of listed Commonwealth corporations by the sharemarket than the value of net assets recorded by these corporations.
(b)	Net financial worth equals total financial assets less total liabilities less shares and other contributed capital.
(c)	Net debt equals the sum of deposits held, advances received and borrowing, less the sum of cash and deposits, advances paid, and investments, loans and placements.

Table 14:  Public non‑financial corporations sector cash flow statement(a)

(a)	A positive number denotes a cash inflow, a negative sign denotes a cash outflow.
(b)	The 2001‑02 Budget estimate for other payments for operating activities includes the cash flow to the general government sector from PNFC distributions paid.
(c)	The 2001‑02 Budget estimate for distributions paid comprise the PNFC dividends to external shareholders.
(d)	The acquisition of assets under finance leases reduces the surplus/deficit.

Table 15:  Total non‑financial public sector operating statement

(a)	GFS net lending also equals net transactions in financial assets less net transactions in liabilities. The term ‘fiscal balance’ is not used by the ABS.
(b)	The fiscal balance and net operating balance outcomes for the total non‑financial public sector in this table are $63 million greater than the fiscal balance and net operating balance outcomes for this sector in Appendix C. Attachment A to Part I provides an explanation.

Table 16:  Total non‑financial public sector balance sheet

(a)	Net worth is calculated as assets less liabilities less shares and other contributed capital.
(b)	The net worth outcome for the total non‑financial public sector in this table is $63 million greater than the net worth outcomes in Appendix C. Attachment A to Part I provides an explanation.
(c)	Net financial worth equals total financial assets less total liabilities less shares and other contributed capital.
(d)	Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowings, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Table 17:  Total non‑financial public sector cash flow statement(a)

(a)	A positive number denotes a cash inflow, a negative sign denotes a cash outflow.
(b)	‘Distributions paid’ comprise Non-Financial Public Sector (NFPS) dividends to external shareholders.
(c)	The acquisition of assets under finance leases reduces the surplus/deficit.

Table 18:  Public financial corporations sector operating statement

(a)	GFS net lending also equals net transactions in financial assets less net transactions in liabilities. The term ‘fiscal balance’ is not used by the ABS.

Table 19:  Public financial corporations sector balance sheet

(a)	Net worth is calculated as assets less liabilities less shares and other contributed capital.
(b)	Net financial worth equals total financial assets less total liabilities less shares and other contributed capital.
(c)	Net debt equals the sum of deposits held, advances received and borrowing, less the sum of cash and deposits, advances paid, and investments, loans and placements.

Table 20:  Public financial corporations sector cash flow statement(a)

(a)	A positive number denotes a cash inflow, a negative sign denotes a cash outflow.
(b)	‘Distributions paid’ comprise PFC dividends to external shareholders.
(c)	The acquisition of assets under finance leases reduces the surplus/deficit.

Loan Council Allocation
Under Loan Council arrangements, every year the Commonwealth and each State and Territory nominate a Loan Council Allocation (LCA). A jurisdiction’s LCA incorporates:
•	the estimated non‑financial public sector cash deficit (made up from the general government and public non‑financial corporations sectors deficits);
•	net cash flows from investments in financial assets for policy purposes; and
•	memorandum items. These transactions, though not formally borrowings, have many of the characteristics of borrowing.
LCA nominations are considered by the Loan Council, having regard to each jurisdiction’s fiscal position and reasonable infrastructure requirements, as well as the macroeconomic implications of the aggregate figure.
In March 2000 the Commonwealth nominated, and the Loan Council endorsed, an LCA surplus for 2000‑01 of $6.9 billion. In the 2000‑01 Budget the Commonwealth estimated an increased LCA surplus of $8.5 billion.
As set out in Table 21, the Commonwealth’s 2000‑01 LCA outcome is a $10.9 billion surplus, compared with the 2000–01 Budget estimate of $8.5 billion. The difference between the 2000‑01 Budget estimate and the outcome largely reflects an increase in the general government cash surplus.
Table 21:  Commonwealth Loan Council Allocation

(a)	Such transactions involve the transfer or exchange of a financial asset and are not included within the cash deficit. However, the cash flow from investments in financial assets for policy purposes has implications for a government’s call on financial markets.
(b)	For the Commonwealth, memorandum items comprise the change in net present value (NPV) of operating leases (with NPV greater than $5 million), university borrowings, overfunding of superannuation and an adjustment to exclude the net financing requirements of statutory marketing authorities and Telstra from the LCA.