Attachment 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 Australian Government general government sector. The budget financial statements are based on GFS standards with the exception of the divergences discussed in Attachment A.

Table 8: Australian Government general government sector operating statement

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

Table 9: Australian Government general government sector balance sheet

1. The 2005-06 equity and net worth outcomes include the Telstra shareholding valued at the closing share price on 30 June 2006.
2. Net worth is calculated as total assets minus total liabilities.
3. Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table 10: Australian Government general government sector cash flow statement^(a)

Table 10: Australian Government general government sector cash flow statement^(a) (continued)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. The acquisition of assets under finance leases decreases the underlying cash balance. The disposal of assets previously held under finance leases increases the underlying cash balance.
3. The term underlying cash balance is not used by the ABS.

Table 11: Australian Government general government sector statement of other economic flows (reconciliation of net worth)

1. Adjustment to net worth arising from a change in 2004-05 outcomes mainly due to the move to new Australian Accounting Standards and changes in accounting policy.
2. Includes a change in the valuation of the Telstra shareholding between the closing share price on 30 June 2005 and 30 June 2006.
3. Largely reflects revaluation of assets and liabilities.