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 Commonwealth general government net debt. Net interest payments are expected to fall to 0.6 per cent of GDP in 2002-03 due to lower interest rates and reduced Commonwealth and State/local general government net debt.
The contribution of the PNFC sector to non-financial public sector net interest payments has decreased significantly in recent years, as reduced investment, improved PNFC performance and privatisations have reduced PNFC sector net debt as a share of GDP.
Chart 7: General government net interest payments
Appendix A: Supplementary cash tables
Table A1: Consolidated cash receipts, payments and cash surplus by institutional sector as a per cent of GDP
(e) Estimates.
(p) Projections.
na Data not available.
Table A2: Non-financial public sector cash surplus by level of government as a per cent of GDP
(e) Estimates.
na Data not available.
Table A3: General government net interest payments by level of government
(a) There is a break in the Commonwealth net debt and net interest payments series between 1998-99 and 1999-2000 (the first year of accrual budgeting). Up to 1998-99, Commonwealth government debt instruments are valued at historic cost. From 1999-2000 onwards, Commonwealth government debt instruments are valued at market prices, consistent with accrual Government Finance Statistics (GFS) standards. These changes are discussed further in Statement 8.
(e) Estimates.
(p) Projections.
na Data not available.
Table A4: Non-financial public sector net debt(a)
(a) Between 1997-98 and 1999-2000 there is a structural shift in the net debt series as jurisdictions moved from the cash GFS framework to the accrual GFS framework. Consistent with this framework, some jurisdictions value net debt at market prices, while other jurisdictions continue to value net debt at historic cost. Commonwealth net debt is valued at market prices from 1999-2000, as discussed in Statement 8.
(e) Estimates.
(p) Projections.
na Data not available.
The information in this Statement is consistent with the Australian Bureau of Statistics (ABS) GFS reporting framework for the public sector.
Data are presented both by level of government and institutional sector. `Level of government' refers to the distinction between the Commonwealth and State/local governments. When combined, the Commonwealth and State/local governments and universities are referred to as the `consolidated public sector'.
The clear policy intent of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations is that the GST is collected by the Commonwealth, as an agent for the States and Territories, and appropriated to the States. The Commonwealth accrual revenue and expenses and cash receipts and payments measures included in this Statement therefore differ from ABS GFS measures by treating the GST as State tax revenue.
Data are sourced from the ABS 1997-98 Government Finance Statistics (Cat. No. 5512.0) and 2002-03 Government Finance Estimates (Cat. No. 5501.0), Commonwealth Final Budget Outcomes and jurisdictions' 2002-03 mid-year reports or 2003-04 Budgets.
Since the move to accrual budget reporting, cash surplus data from the cash flow statements are used. Cash receipts are now proxied by receipts from operating activities and sales of non-financial assets, and cash payments are proxied by payments for operating activities, purchases of non-financial assets and acquisitions of assets under finance leases. Due to methodological and data source changes associated with the move to an accrual accounting framework, time series data that use measures derived under both cash and accrual accounting should be used with caution.
Consistent with the revised GFS treatment announced by the ABS (ABS Cat. No. 5501.0, released October 2002), the Commonwealth general government surplus measures in this Statement, from 1998-99 onwards, incorporate the interest component of superannuation related payments by the Commonwealth general government sector in respect of accumulated PNFC superannuation liabilities.
Net debt data are sourced from the ABS 1998 Public Sector Financial Assets and Liabilities (ABS Cat. No. 5513.0), the ABS 1999-2000 and 2002-03 Government Finance Estimates (ABS Cat. No. 5501.0) and Commonwealth Final Budget Outcomes. Net debt numbers from 2001-02 are taken from jurisdictions' 2002-03 mid-year reports and Commonwealth Treasury estimates.
Commonwealth budget aggregates, including net debt for 1999-2000 onwards, have been revised relative to the 2002-03 Mid-Year Economic and Fiscal Outlook and the respective Final Budget Outcomes to incorporate changes associated with the market valuation of net debt. These changes are discussed in Statement 8.