Statement 6: Expenses and Net Capital Investment

Overview

Australian Government general government expenses are expected to grow in real terms in 2006-07 and over the forward estimates period to 2009-10 (Table 1). Expenses are forecast to rise slightly from 21.6 per cent of gross domestic product (GDP) in 2005-06 to 21.8 per cent of GDP in 2006-07, and are projected to increase to 21.9 per cent of GDP in 2009-10. On a cash basis, payments remain at around 21.6 per cent of GDP over the budget and forward estimates.

Table 1: Estimates of expenses

1. As published in the Mid-Year Economic and Fiscal Outlook 2005-06.
2. Real growth is calculated using the non-farm gross domestic product (GDP) deflator.