FINAL BUDGET OUTCOME
2001‑02

CIRCULATED BY
THE HONOURABLE PETER COSTELLO, M.P.
TREASURER OF THE COMMONWEALTH OF AUSTRALIA, AND
SENATOR THE HONOURABLE NICK MINCHIN
MINISTER FOR FINANCE AND ADMINISTRATION
FOR THE INFORMATION OF HONOURABLE MEMBERS

SEPTEMBER 2002

© Commonwealth of Australia 2002
ISBN 0 642 74172 7
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Foreword
The Final Budget Outcome 2001‑02 has been prepared in a manner consistent with the Charter of Budget Honesty Act 1998. The Charter requires that, inter alia, the Government provide a final budget outcome report no later than three months after the end of the financial year. Consistent with these requirements, this report encompasses Commonwealth general government fiscal outcomes for the 2001‑02 financial year; and is based on external reporting standards.
•	Part I provides the general government sector budget aggregates for 2001‑02 together with an analysis of the 2001‑02 final budget outcome. This includes summary analysis of revenue, expenses, net capital investment, the balance sheet (net debt and net worth) and cash flows.
•	Part II presents the Commonwealth financial statements for 2001‑02 in accordance with the Australian Bureau of Statistics (ABS) Government Finance Statistics (GFS) framework. This data covers the general government sector as well as the Commonwealth public corporations sector. 
•	Part III presents the 2001‑02 Commonwealth general government sector primary financial statements in accordance with AAS31 Financial Reporting by Governments.
•	Part IV provides details for 2001‑02 on federal financial relations, updated from that contained in the Federal Financial Relations 2002‑03, Budget Paper No. 3.
•	Appendix A contains details of budget concepts. Appendix B contains expenses data on a functional and sub‑functional basis. Historical budget and net debt data are presented in Appendix C.

Contents
Foreword	iii
Part I:  Commonwealth Budget Outcome	1
Overview		1
Revenue		2
Expenses		5
Net capital investment	7
Net debt and net worth	7
Cash flows		8
Attachment A:  External reporting standards	11
Part II:  Government Finance Statistics Statements	13
Loan Council Allocation	29
Part III:  AAS31 Financial Reporting by Governments Primary
Financial Statements	31
Statistics, concepts and notes to the financial statements	35
Part IV:  Federal Financial Relations	43
GST revenue provision	43
General revenue assistance	46
Local government general purpose assistance	48
Specific Purpose Payments	50
Appendix A:  External Reporting Standards and Budget Concepts	61
Appendix B:  Expenses by Function and Sub‑Function	73
Appendix C:  Historical Fiscal Data	77
Acronyms	87

List of tables
Part I:  Commonwealth Budget Outcome
Table 1:	Commonwealth general government sector budget aggregates	1
Table 2:	Commonwealth general government revenue (accrual basis)	4
Table 3:	Commonwealth general government expenses by function	6
Table 4:	Commonwealth general government net capital investment by function	7
Table 5:	Commonwealth general government net worth, net debt 
and net interest payments	8
Table 6:	Summary of Commonwealth general government cash flows	9
Part II:  Government Finance Statistics Statements
Table 7:	General government sector operating statement	14
Table 8:	General government sector balance sheet	15
Table 9:	General government sector cash flow statement	16
Table 10:	General government sector statement of other economic flows
	(reconciliation of net worth)	17
Table 11:	Supplementary table — Commonwealth general government revenue 
	(accrual basis)	18
Table 12:	Supplementary table — Commonwealth general government indirect tax (accrual basis)	19
Table 13:	Public non‑financial corporations sector operating statement	20
Table 14:	Public non‑financial corporations sector balance sheet	21
Table 15:	Public non‑financial corporations sector cash flow statement	22
Table 16:	Total non‑financial public sector operating statement	23
Table 17:	Total non‑financial public sector balance sheet	24
Table 18:	Total non‑financial public sector cash flow statement	25
Table 19:	Public financial corporations sector operating statement	26
Table 20:	Public financial corporations sector balance sheet	27
Table 21:	Public financial corporations sector cash flow statement	28
Table 22:	Commonwealth Loan Council Allocation for 2001‑02	29
Part III:  AAS31 Financial Reporting by Governments Primary Financial Statements
Table 23:	Statement of financial performance for the Commonwealth general government sector — AAS31	32
Table 24:	Statement of financial position for the Commonwealth general government sector — AAS31	33
Table 25:	Statement of cash flows for the Commonwealth general government
sector — AAS31	34
Note 1:	External reporting standards	35
Note 2:	Reconciliation of cash	36
Note 3:	Income tax — accrual AAS31	37
Note 4:	Indirect tax — accrual AAS31	37
Note 5:	Interest and dividends	38
Note 6:	Other sources of non‑taxation revenue	38
Note 7:	Employee expenses	39
Note 8:	Suppliers expenses	39
Note 9:	Depreciation and amortisation	39
Note 10:	Grants	40
Note 11:	Total non‑financial assets	40
Note 12:	Employee liabilities	41
Note 13:	Grants payable	41
Note 14:	Net asset movements	41
Note 15:	Taxes — cash AAS31	42
Part IV:  Federal Financial Relations
Table 26:	GST revenue provision to the States and Territories	45
Table 27:	Guaranteed Minimum Amount components, GST revenue provision and Budget Balancing Assistance to the States and Territories	47
Table 28:	National Competition Policy Payments	48
Table 29:	Financial Assistance Grants to local government, 2001-02	49
Table 30:	Specific Purpose Payments to the States, repayments of advances and interest payments	51
Table 31:	Specific Purpose Payments direct to Local Government Authorities	60

Appendix A:  External Reporting Standards and Budget Concepts
Table A1:	Selected differences between AAS31 and GFS reporting standards	68
Table A2:	Reconciliation of GFS and AAS31 revenue and expenses	69
Table A3:	Reconciliation of AAS31 net operating result and fiscal balance	70
Appendix B:  Expenses by Function and Sub‑Function
Table B1:	Commonwealth general government expenses by function and sub‑function	74
Appendix C:  Historical Fiscal Data
Table C1:	Commonwealth general government sector receipts, payments and surplus	78
Table C2:	Commonwealth general government sector taxation receipts, non‑taxation receipts and total receipts	79
Table C3:	Commonwealth receipts (cash basis)	80
Table C4:	Commonwealth general government sector net debt and net interest payments	81
Table C5:	Commonwealth general government sector revenue, expenses, net capital investment, fiscal balance and net worth	82
Table C6:	Commonwealth general government sector accrual taxation revenue, non‑taxation revenue and total revenue	83
Table C7:	Commonwealth revenue (accrual basis)	84
Table C8:	Commonwealth cash receipts, payments and cash surplus by institutional sector	85
Table C9:	Commonwealth accrual revenue, expenses and fiscal balance by institutional sector	86

Notes
(a)	The following definitions are used in this paper:
•	‘real’ means adjusted for the effect of inflation;
•	real growth in expenses is measured by the non‑farm Gross Domestic Product deflator; and
•	one billion is equal to one thousand million.
(b)	Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding:
•	estimates under $100,000 are rounded to the nearest thousand;
•	estimates $100,000 and over are generally rounded to the nearest tenth of a million;
•	estimates midway between rounding points are rounded up; and
•	the percentage changes in statistical tables are calculated using unrounded data.
(c)	For the budget balance, a negative sign indicates a deficit while no sign indicates a surplus. 
(d)	The following notations are used:
	NEC/nec	not elsewhere classified
	AEST	Australian Eastern Standard Time
	‑	nil
	..	not zero, but rounded to zero
	na	not applicable (unless otherwise specified)
	nfp	not for publication
	$m	$ million
	$b	$ billion

(e)	References to the ‘States’ or ‘each State’ include the Territories. The Australian Capital Territory and the Northern Territory are referred to as ‘the Territories’. The following abbreviations are used for the names of the States, where appropriate:
NSW	New South Wales
VIC/Vic	Victoria
QLD/Qld	Queensland
WA	Western Australia
SA	South Australia
TAS/Tas	Tasmania
ACT	Australian Capital Territory
NT	Northern Territory