Net interest payments

Consolidated general government net interest payments peaked in 1995-96 at 2.2 per cent of GDP due to the increased level of Australian Government general government net debt. Consolidated net interest payments are expected to reduce to around 0 per cent of GDP in 2004-05 due to reduced Australian and state/local general government net debt since 1995-96 and lower interest rates in recent years.

Chart 7: General government net interest payments

The contribution of the PNFC sector to NFPS net interest payments has decreased significantly since 1997‑98 as reduced investment by PNFCs, improved performance by PNFCs and privatisations have reduced PNFC net debt as a share of GDP.

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