Statement 6: Expenses and
Net Capital Investment
Overview
Australian Government general government sector expenses are expected to increase in real terms over the Budget and across the forward years, and increase as a percentage of GDP (Table 1). Expenses are forecast to grow to 28.7 per cent of GDP in 2009‑10 and 28.2 per cent of GDP in 2010‑11, before progressively declining to 27.0 per cent of GDP in 2012‑13.
Table 1: Estimates of general government sector expenses
- As estimated at the February 2009 Updated Economic and Fiscal Outlook.
- Real growth is calculated using the Consumer Price Index.
A major factor driving the increase in estimated expenses in 2009‑10 is the global financial crisis and the Government's fiscal stimulus packages which were introduced to cushion the impact of the crisis on Australia. Real growth is expected to slow from 2010‑11 reflecting the temporary nature of these packages.
In cash terms real growth in payments is 0.1 per cent in 2010‑11, 0.9 per cent in 2011‑12 and 1.3 per cent in 2012‑13. This is consistent with the Government's fiscal strategy to hold real growth in payments to 2 per cent a year when economic growth returns to above trend levels.
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