Fiscal balance
The non-financial public sector consists of both the general government sector and the public non-financial corporations (PNFCs) sector. The general government sector comprises the majority of the non-financial public sector. The PNFC sector tends to be more important at the State/local level where most PNFCs are concentrated.
The Commonwealth general government fiscal balance is expected to fall slightly from a surplus of 0.2 per cent of Gross Domestic Product (GDP) in 2002-03 to a surplus of 0.1 per cent of GDP in 2003-04. It is projected that in 2004-05, the Commonwealth general government fiscal balance will be in deficit by 0.1 per cent of GDP before returning to balance in 2005-06. A surplus of 0.3 per cent of GDP is projected for 2006-07.
The State/local general government fiscal balance is expected to be roughly in balance in 2002-03 but is projected to move to a small deficit of 0.1 per cent of GDP in 2003-04. This projection is based on State and Territory 2002-03 mid-year reviews as most of the States and Territories are yet to bring down their 2003-04 Budgets.
The consolidated PNFC sector fiscal balance is expected to be in a deficit position in 2002-03 (0.3 per cent of GDP) despite an estimated Commonwealth PNFC fiscal balance surplus of 0.1 per cent of GDP. The decrease in consolidated PNFC revenue and expenses as a share of GDP in recent years is partly attributable to the privatisation of PNFCs by both the Commonwealth and State/local governments.
Tables 1, 2 and 3 show general government, PNFCs and non-financial public sector fiscal balance data by level of government respectively.
Table 1: General government fiscal balance by level of government (per cent of GDP)(a)
(a) The fiscal balance is equal to revenue less expenses less net capital investment. Net capital investment is not shown in this table.
(e) Estimates.
(p) Projections.
na Data not available.
Table 2: Public non-financial corporations fiscal balance by level of government (per cent of GDP)(a)
(a) The fiscal balance is equal to revenue less expenses less net capital investment. Net capital investment is not shown in this table.
(e) Estimates.
na Data not available.
Table 3: Non-financial public sector fiscal balance by level of government (per cent of GDP)(a)
(a) The fiscal balance is equal to revenue less expenses less net capital investment. Net capital investment is not shown in this table.
(e) Estimates.
na Data not available.