Statement 8: Trends in Public Sector Finances
Part II: Fiscal balance
This section examines fiscal balance data for the Commonwealth and State/local non-financial public sectors, including medium term projections for the Commonwealth general government sector.
Data
As not all States and Territories have made the transition to accrual accounting, fiscal balance data for the consolidated public non-financial corporations and non-financial public sector are currently available for the period 1998-99 to 2001-02, while consolidated general government data is available to 2002-03. Tables 1, 2 and 3 show general government, public non-financial corporations and non-financial public fiscal balance data by level of government respectively.
Trends
The Commonwealth general government fiscal balance is expected to move from a deficit of 0.4 per cent of gross domestic product (GDP) in 2001-02, to be in balance in 2002-03, and to return to surplus in 2003-04.
The State/local general government sector is expected to move from a minor deficit of 0.1 per cent of GDP in 2001-02 to be in balance in 2002-03 (although the latter estimate should be treated with some caution as the majority of States and Territories have yet to bring down their 2002-03 budgets).
The consolidated PNFC sector is expected to be in a fiscal surplus position in 2001-02. 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.
Table 1: General government fiscal balance by level of government (per cent of GDP)(a)
(a) Source: ABS Cat. No. 5512.0, State and Territory 2001-02 mid-year reports and Treasury estimates.
(b) Consolidated government includes Commonwealth and State/local governments and universities.
(c) 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) Source: ABS Cat. No. 5512.0, State and Territory 2001-02 mid-year reports and Treasury estimates.
(b) Consolidated government includes Commonwealth and State/local governments and universities.
(c) 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) Source: ABS Cat. No. 5512.0, State and Territory 2001-02 mid-year reports and Treasury estimates.
(b) Consolidated government includes Commonwealth and State/local governments and universities.
(c) 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.
