State general government sector cash balance
In aggregate terms, the general government sector cash surplus is estimated to be 0.1 per cent of GDP in 2005-06, compared to 0.3 per cent in 2004-05. In 2005-06, cash surpluses are expected for all states except Victoria, the Australian Capital Territory and the Northern Territory (Chart 6).
Chart 6: Individual state general government sector cash balance(a)(b)
- The ABS is currently reviewing accrual time series data, in consultation with all Treasuries, as accrual reporting is now established in all jurisdictions. Improvements in the quality of the time series data have resulted in some changes to these series. Further revisions are expected over the next year.
- States’ cash balances are expressed as a percentage of GSP (left hand axis) and the states’ aggregate cash balance is expressed as a percentage of GDP (right hand axis).
Sources: ABS Cat. No. 5512.0, state 2004-05 mid-year reports, Victoria, Australian Capital Territory and Northern Territory 2005-06 Budgets and Treasury estimates.
An underlying cash surplus reflects the extent to which cash is available to a government to increase financial assets or decrease liabilities (assuming no revaluations or other changes occur). An underlying cash deficit measures the extent to which a government requires cash, either by running down financial assets or by borrowing.
Over the forward years, the aggregate state general government sector cash surplus is expected to remain steady. Despite considerable variation in the states’ cash positions in recent years, most states are forecasting cash surpluses by 2007-08. However, Victoria and the Northern Territory are expecting small cash deficits in 2007-08.
Trends in the aggregate cash surplus for state/local general government, public non-financial corporations and the non-financial public sector are presented in Chart 2, Statement 12, Budget Paper No. 1.