Part 1: Australian Government Budget Outcome
In 2006-07, the Australian Government general government sector recorded an underlying cash surplus of $17.2 billion, or 1.6 per cent of gross domestic product (GDP). The fiscal balance was in surplus by $15.4 billion (1.5 per cent of GDP).
Table 1: Australian Government general government sector budget aggregates(a)
- All figures are based on Government Finance Statistics (GFS) standards, but with goods and services tax (GST) revenue collected on behalf of the States and Territories netted off revenue and expenses.
- Excludes Future Fund earnings.
Australian Government general government sector net worth improved by $16.8 billion in 2006-07 to around -$6.1 billion, largely reflecting the strong budget surplus. Net debt, which reached zero in 2005-06, improved by $25.4 billion over the financial year to -$30.8 billion.
In cash terms the outcome was $3.6 billion higher than estimated at the time of the 2007-08 Budget, with cash payments $1.5 billion lower than expected and cash receipts $2.1 billion higher than expected. The cash payments outcome resulted from lower than expected spending across a number of programmes including delays in some defence acquisition projects and stronger economic conditions reducing Family Tax Benefit and Age Pension payments. The higher cash receipts outcome was largely due to higher than expected receipts from company tax, superannuation funds tax and non-taxation sources of income.