Statement 9: Budget Financial Statements
Appendix B: Australian Loan Council Allocation
Under Loan Council arrangements, every year the Commonwealth and each State and Territory government nominate a Loan Council Allocation. A jurisdiction's Loan Council Allocation incorporates:
- the estimated non‑financial sector ABS GFS cash surplus/deficit (made up from the general government and public non‑financial corporations sector balances and acquisitions under finance leases and similar arrangements);
- net cash flows from investments in financial assets for policy purposes; and
- memorandum items, which involve transactions that are not formally borrowings but nevertheless have many of the characteristics of borrowings.
Loan Council Allocation nominations are considered by the Loan Council, having regard to each jurisdiction's fiscal position and the macroeconomic implications of the aggregate figure.
As set out in Table B1, the Commonwealth's 2009‑10 Loan Council Allocation budget update is a $60,965 million deficit. This compares with its Loan Council Allocation nomination of a $34,073 million deficit endorsed by Loan Council on 25 March 2009.
The Loan Council Allocation budget update falls outside the tolerance limit set at nomination. This change primarily reflects the decline in taxation revenues resulting from the global recession and the increase in payments associated with the Government's economic stimulus packages in response to the downturn in economic conditions.
Table B1: Commonwealth's Loan Council Allocation budget update for 2009‑10
- May not directly equate to the sum of the GG sector and the PNFC sector cash surplus/deficit due to intersectoral transfers which are netted out.
- Net cash flow from investments in financial assets for policy purposes are displayed with the same sign as they are reported in cash flow statements. Such transactions involve the transfer or exchange of a financial asset and are not included within the ABS GFS cash surplus/deficit. However, the cash flow from investments in financial assets for policy purposes has implications for a government's call on financial markets.
- For the Commonwealth's Loan Council Allocation, memorandum items include the change in net present value (NPV) of operating leases (with NPV greater than $5 million), the over‑funding of superannuation and the net financing requirement of the Australian National University.
If www.budget.gov.au responds slowly or you are having trouble downloading a document, try one of the Budget Website Mirrors
Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact The Treasury.
