FEDERAL FINANCIAL RELATIONS 1997-98
CIRCULATED BY THE HONOURABLE PETER COSTELLO, M.P., TREASURER OF THE COMMONWEALTH OF AUSTRALIA, AND THE HONOURABLE JOHN FAHEY, M.P.,MINISTER FOR FINANCE
FOR THE INFORMATION OF HONOURABLE MEMBERS ON THE OCCASION OF THE BUDGET 1997-98 13 MAY 1997
Figures for 1996-97 and 1997-98 are estimates.
Consistent with the focus in Budget Paper No. 1 on the underlying rather than the headline budget balance, Chapter I of this Paper examines trends in the public sector underlying deficit of the States. The underlying deficit closely approximates the national accounts net lending measure and hence provides a good estimate of the savings-investment gap for the relevant sector. As explained in Statement 7 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.
The Appendix to this Paper provides information on the level and interstate distribution of specific purpose payments, repayments, advances and interest. Information on the level and interstate distribution of Commonwealth payments to local government authorities is also included.