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 14: Australian Government general government sector operating statement

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

Table 15: Australian Government general government sector balance sheet

1. Equity includes equity holdings of the Future Fund.
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.
4. Includes the impact of the partial sale of the Government's holding in Telstra and transfer of the Government's remaining shares to the Future Fund. It is assumed that the Future Fund will increasingly be invested in equities until it reaches a portfolio equity allocation consistent with the benchmark return (excluding Telstra shares) specified in the Government's investment mandate.

Table 16: Australian Government general government sector cash flow statement^(a)

Table 16: 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 17: Australian Government general government sector statement of other economic flows
(reconciliation of net worth)

1. Change in net worth arising from a change in 2005-06 outcomes.
2. Revaluations of equity reflects changes in the market valuation of commercial entities. This line also reflects any equity revaluations at the point of disposal or sale.
3. Largely reflects revaluation of assets and liabilities.