Peter Costello

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2000-01 Final Budget Outcome

NO.072

2000-01 Final Budget Outcome

In 2000-01, the Commonwealth general government sector achieved an underlying cash surplus of $5.6 billion and an accrual fiscal surplus of $5.9 billion. This was the fourth consecutive underlying cash surplus recorded by the Government, and a significantly stronger outcome than was budgeted.

The cash surplus outcome of $5.6 billion was about $3.4 billion higher than estimated at the 2001-02 Budget, while the accrual outcome of $5.9 billion was $0.5 billion higher than expected. These outcomes result mainly from stronger than expected company taxation revenue and cash receipts, and lower than anticipated expenses.

  • Total cash receipts were about $1.7 billion higher than estimated at the 2001-02 Budget. In cash terms, taxation revenue was around $1.4 billion higher than expected, principally from company tax. The additional strength in taxation receipts was largely due to a combination of higher than anticipated corporate profitability in 2000 and a timing effect through lower than expected deferrals of tax payments under the transitional PAYG arrangements. Accrual taxation revenue was around $0.5 billion above the corresponding estimate at the 2001-02 Budget.
  • Total cash payments were around $1.8 billion lower than estimated at the 2001-02 Budget. This outcome reflects a combination of lower than anticipated expenditure on some personal benefit payments, higher than expected non-cash accrual expenses and the carryover of some cash payments from 2000-01 into 2001-02. Accrual expenditure (expenses and net capital investment) was in line with expectations.

The Budget surplus recorded in 2000-01 enabled the Government to reduce the level of Commonwealth General Government net debt by $13.8 billion, $3.5 billion more than was expected at the 2001-02 Budget. Net debt has fallen from a peak of almost 20 per cent of GDP in 1995-96 to just 5.8 per cent of GDP at 30 June 2001. In dollar terms, the Coalition government has now repaid around $57 billion of net debt since 1996-97.

An electronic version of the 2000-01 Final Budget Outcome document can be found at: www.budget.gov.au

CANBERRA
26 September 2001





26 Sep 2001

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