Statement 6 presents estimates of general government expenses and net capital investment on a Government Finance Statistics (GFS) accrual accounting basis. The statement includes information on the allocation of Commonwealth funds to the various functions of government. These functions are based on an international standard classification of functions of government that is incorporated into the GFS framework.
The first part of this Statement provides information on trends in expenses estimates whilst the second part presents trends in net capital investment estimates. Estimates are on a Commonwealth General Government Sector basis.
Further information on portfolio and agency expenses, capital movements, major outputs and administered items may be found in the respective Portfolio Budget Statements.
The key points are:
Commonwealth general government expenses are expected to grow moderately in real terms in 2003-04 (Table 1). Expenses are forecast to fall from 22.6 per cent of GDP in 2002-03 to 22.4 per cent of GDP in 2003-04. Further reductions in the size of expenses relative to GDP are projected over the forward estimates period to 2006-07.
Table 1: Estimates of expenses
- As published in the Mid-Year Economic and Fiscal Outlook 2002-03.
- Real growth is calculated using the non-farm gross domestic product (GDP) deflator.