Appendix B: Budget financial statements

The budget financial statements consist of an operating statement, balance sheet, cash flow statement and statement of other economic flows (reconciliation of net worth) for the Commonwealth general government sector. The budget financial statements are based on GFS standards with the exception of the divergences discussed in Appendix A.

Table B1: Commonwealth general government sector operating statement

1. The term 'fiscal balance' is not used by the ABS.

Table B2: Commonwealth general government sector balance sheet

1. Net worth is calculated as total assets minus total liabilities.
2. Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowings, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table B3: Commonwealth general government sector cash flow statement^(a)

1. A positive number denotes a cash inflow, a negative sign denotes a cash outflow.
2. The acquisition of assets under finance leases reduces the surplus/deficit. The disposal of assets previously held under finance leases improves the surplus/deficit.

Table B4: Commonwealth general government sector statement of other economic flows (reconciliation of net worth)

1. Includes a reduction in opening net worth for 2002-03 of $2.5 billion due to the adoption of market valuation of debt. This change has been back-cast to 1999-2000, as discussed in Box 1 of this Statement.
2. Revaluations and profit on sale of assets are derived from Australian Accounting Standards data. Revaluations reflect the difference between the GFS valuation of commercial entities at market value and the AAS valuation at historic cost.
3. Defence weapons are treated as expenses rather than assets under the GFS framework, hence changes in value do not contribute to net worth and are not included in other economic flows. This component represents the removal of defence weapons included in net writedowns and other movements.

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