MINISTER FOR FINANCE

EMBARGO N0: '86/17

STATEMENT OF COMMONWEALTH GOVERNMENT FINANCIAL TRANSACTIONS -  APRIL 1986

Minister for finance,  senator the hon peter walsh

The Commonwealth Government's Statement of Financial Transactions  for April 1986 is now available.  The following table provides a  comparison of the aggregates for .the month with the results for the

same period of 1984-85 and the estimates for 1985-86.

Month of April

1986

10 Months to Ã¢ÂÂ   Budgeted Increase

:  April 1986 for 1985-86 on

1984-85 Outcome

Actual Increase  on April

1985

Actual

*

Increase  on same

period of  1984-85

$m % . $m % %

Outlays 6178 11.2 57769 10.2 8.4

Receipts 8690 24.0 50335 16.9 12.6

Surplus 2512 Deficit 7434

1

I

2

DEFICIT/SURPLUS

The outcome for,the month of April 1986 was a surplus of $2512m,

compared with a deficit of $1452m in March 1986 and a surplus of  $1452m in April 1985.

The large rise in the April 1986 surplus when compared to April 1985

is largely due to the delay in the issue of provisional tax  assessments in April 1985 as a result of the public servants'

industrial action in early 1985. In addition,  as reported in last  month's press statement,  some provisional tax collections that were  due to be collected in March were held over until April due to the  Easter public holidays.

As illustrated in the graph below, the April surplus has reduced the  cumulative deficit from its end-March peak of $9949m to $7434m.  In  keeping with previous years' patterns the cumulative deficit is  expected to decline further in the final two months of 1985-86 .

P a t t e r n  o f  C u m u l a t i v e  M o n t h l y  D e f i c i t s

12

8 4 - 8 5

10 -

8 2 - 8 3

8 1 - 8 2

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

*  Budgeted deficit $491 9m

3

OUTLAYS

Outlays in April 1986 were $6178m, some $626m or 11.2% higher than

in April 1985. This compares with a budget estimate (average over

the year)  of 8.4%. Both timing factors and higher expenditure

estimates contributed to the relatively high month-on-month  variation. The main factors were:

revised Medicare hospital payment arrangement,  resulting in  larger than usual payments made in April 1986 (including _a

one-off payment of $41m for the NSW Visiting Medical  Officers' Arbitration case), together with higher than  estimated expenditure on Medicare medical benefits  (estimated $20m);

higher than estimated expenditure in a number of Industry

Assistance and Development programs,  notably Assistance to  the Wool Industry ($10m. - due to timing factors), Export  Market Development Grants ($9m - due to timing factors),

Fertilizer Subsidies ($10m - recent Government decision to

increase subsidies further), Motor Vehicle Component  Development Grants ($10m - due to timing factors);

higher than budgeted expenditure (approximately $58m) in a

number of minor Social Security and Welfare programs eg  Home Services for the Aged, Handicapped Persons Facilities  and Aboriginal Advancement Programs;  partly offset by

timing effects resulting in higher than usual payments to

Government Schools in April 1985 due to the introduction in  1985 of a new basis for grants (around $31m).

The April result has brought the cumulative rate of growth for the

first ten months of 1985-86 to 10.2%, up marginally from its

end-March level of 10.1%. '

4

t Â· Â·

>  '

As indicated in the table below, the main programs experiencing

significant variations from the budget on a cumulative basis are

similar to those identified in previous months. In large part, this

reflects movements in interest and exchange rates, but also changes  in program-specific parameters such as the estimated number of .   unemployment benefit recipients and level of Medicare medical  benefits. -

Cumulative Change 1985-86

Outlays to Budget

. ________ ,  Increase

Apr Apr .

1985 1986

$m $m $m % % s

Public Debt Interest  Tax sharing grants/  4595 5916 1321 28.8 18.9

financial assistance -

and temporary/special  grants - States 7662 8331 669 8.7 8.1

Medicare medical benefits 1838 2154 316 17.2 11.4

Commonwealth Tertiary 1932 2149 217 11.2 8.8

Education Commission  programs  Age pensions  Invalid pensions and

4754 4945 191 4.0 5.9

allowances 1224 1393 169 13.8 15.4

Defence Equipment and  Stores Supporting parents'

1658 1824 166 10.0 9.4

benefit 888 1032 144 16.2 15.3

Service Pensions 1242 1354 111 9.0 7.0

Disability Pensions and 695 797 102 14.7 10.5

allowances Â·  Schools Commission  programs 1395 1494 99 7.1 9.8

Unemployment benefits 2471 2568 97 3.9 0.2

Defence Force Retirement 239 288 49 20.6 10.9

and Death Benefits

Â«

A more detailed functional tabulation of the variations on a

cumulative basis together with explanations, is provided at  Attachment A. ,

5

RECEIPTS -  .

Total receipts for the first ten months of 1985-86 were

$50,335 million, an increase of 16.9 per cent over the same period  o f :  1984-85. Taxation receipts, which are forecast to coristituteÂ· .'’. .

over nine-tenths of total receipts in 1985-86, were $46,760 mi111oh,

an increase of 16.4 per cent over 1984-85.. In comparison, to

end-March total receipts were 15.6 per cent greater than in the  corresponding months of 1984-85 and taxation receipts 14.8 per cent  greater. .

Comparisons with collections for the first ten months of 1984-85 are

complicated by the impact of the public servants' industrial action  in January and February of 1985. Although the backlog of

collections had been cleared by the end of March 1985, the

industrial action delayed the issue of provisional tax assessments  for 1984-85. As a result, collections from other individuals were  depressed in April 1985.

Ã¢ÂÂ   Ã¢ÂÂ  '  ; .  " "

Gross PAYE receipts were 12.7 per cent higher than in the same

period of 1984-85. The rate of growth to date is consistent with  the 13.0 per cent forecast for 1985-86.

The increase in gross PAYE collections was partly offset by a 19.8 per cent grpwth in refunds compared with the corresponding

months of 1984-85. As a result, net PAYE collections increased by 11.9 per cent.

Collections from non-PAYE (other) individuals were 28.9 per cent

higher in the ten months to end April 1986 compared with the same  months of 1984-85. The public servants' industrial action of  1984-85 contributes to this high growth rate. .

6

l '

Collections under the Prescribed Payments System were 23.0 per cent

higher than in the first ten months of 1984-85. This reflects " higher activity in those industries .covered by the system and the .   growing number of taxpayers -  receiving payments that;are subject to  PPS deductions. .  :

Company tax collections were 22.6 per cent higher than for the .

period to end-April 1985. Included in these collections is Â· $18.6 million attributable to the Taxation (Unpaid Company Tax)

legislation, compared with about $50.4 million collected to :   end-April 1985.

Receipts from withholding tax continue to run well ahead of those in

the corresponding months of 1984-85. The 31.5 per cent growth in  collections from dividends reflects the increase in company income

in 1984-85, while the 45.0 per cent growth in collections on  interest reflects both the growth in Australia's foreign debt and  the impact of the depreciation of the $A on interest payments .

denominated in foreign currencies.

Sales tax receipts to end-April 1986 were 18.7 per cent higher than  in'the first ten months of 1984-85. However, collections are a  little lower than expected due to shortfalls in February and March.

Excise duty collections from crude oil and LPG and traditionally

excisable items were 16.6 per cent above those for the first ten Â·   months of 1984-85. While the rate of growth in collections from

crhde oil and LPG excise is expected to decline over the coming  months following the three, recent IPP reductions, this will be

partially offset by higher growth in traditional excise receipts due  to the increase in excise duty rates on refined petroleum products.

Receipts from ACT taxes and charges are 13.9 per cent higher than in

the same period of 1984-85.

In the ten months to end-April 1986, receipts from customs duty on

imports were 17.1 per cent higher than in the corresponding months

of 1984-85. This reflects higher import volumes and the  depreciation which raised the $A price of imports.

Collections under the heading of 'Other Taxes, Fees and Fines'

increased by 10.0 per cent in the first ten months of 1985-86,

compared with those in 1984-85. They included Recoupment Tax  collections of. $23.9 million compared with about $55 million in  1984-85.

Finally, receipts under the 'Interest, Rent and Dividends' category

were 24.8 per cent above those for the first ten months of 1984-85.  This increase remains largely attributable to the increased payment

from the Reserve Bank discussed in the August CFT press release.

CANBERRA

20 May 1986

SUMMARY OF MAJOR OUTLAYS AND MAIN VARIATIONS IN  1984-85

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

APR APR

1985 1986

$m $m

DEFENCE 4600 5132

. Defence Force  Retirement and Death Benefits 239 288

.  Defence equipment and  stores 1658 1824

. Defence facilities 211 251

.  Defence Industrial  Capacity (adjusted for  transfers)

262 281

. General administration  and operational 344 390

ATTACHMENT A

OUTLAYS BETWEEN JULY-APRIL 1985-86 AND JULY-APRIL

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE  LAST YEAR

$ m  % %

532 11.6 10.0

49 20.6 10.9 . Reflects higher than

expected number of new  pensions,  combined with  the effect of salary  increases awarded by the  Defence Forces '

Remuneration Tribunal.

166 10.0 9.4

40 19.1 21.0

19 7.3 -1.2 .  Reflects mainly price

increases due to exchange  rate variations.

46 13.3 13.5

FUNCTION/ DESCRIPTION

CUMULATIVE OUTLAYS TO

APR APR

1985 1986

$m $m

EDUCATION 3930 4307

.  Commonwealth Tertiary Education Commission  - Universities & CAE's  recurrent and equipment 1667 1854

- Other 265 29 5

- Total 1932 2149

.  Schools Commission programs - Government schools 646 652

- Non-Government" schools 707 799  - Joint programs 42 44

- Total 1395 1494

. Schools in the ACT 124 .  - Govt Schools recurrent 119

- Other 43 47

- . Total 167 166

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE  LAST YEAR

$m % %

377 9.6 9.4

.  Mainly reflects theÂ·  back payment of salary  increases to academics

187 11.2 10.2 and the variable nature

30 11.3 2.0 of claims-based payment

217 11.2 8.8 in the 1  Other 1  category.

6 0.9 1.6

.  Higher than estimated  expenditure in

92 13.0 7.8 non-Government schools

2 5.8 8.0 due to increases in

99 7.1 9.8 enrolments and price

,r increases.

-5 -4.1 4.4 .  Payments to the ACT Schools

4 9.3 7.8 authority were irregular in

-1 -0.5 5.3 1984-85 compared to

monthly payments this year.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR  1985  $m

APR  1986  $m

.  Tertiary Education Assistance Scheme 210 242

.  Secondary allowances 43 63

HEALTH 5074 5724

.  Medicare medical benefit 1838 2154  advances to the Health  Insurance Commission (HIC)

. Advances to the  Health Insurance Commission  - Administration 82 97

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE LAST YEAR

$m % %

32

j 15.4 15.3

21 48.7 50.0

650 12.8 9.6

316 17.2 11.4 Ã¢ÂÂ   . Higher level of

Medicare claims than  estimated in the 1985-86  budget.

15 18.0 7.2 . The cumulative increase

reflects a lag in advances  during the corresponding  period in 1984-85.

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION .  Â·  TO

APR APR

1985 1986

$m $m

. Medical services and  benefits for veterans  and dependants 120 147

.  Medicare hospital  payments 843 901

.  Pharmaceutical services and benefits 519 598

. Nursing home and domicilary  care .

- Nursing home benefits 539 584

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE LAST YEAR

$m % -  %

26 22.0 17.8 .  Catch-up in payment of

treatment accounts,   increased rates and demand  for a number of medical  services.

58 6.9 2.4 . Changed arrangements for

Medicare grants and a one  off payment of $41m in  respect of the NSW  Visiting Medical Officers'  Arbitration case.

80 15.3 7.5 . Increase in drug prices,

coupled with stronger than  estimated growth in  prescription volumes. The  cumulative increase is

somewhat inflated by lags  in payments to chemists in  1984-85.

45 8.4 11.1 .  Lower than expected

abatement cost and reduced  occupancy rates.

FUNCTION/ DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

- Nursing home assistance 231 266

- Other 106 93

- Total 876 943

. Health Services in the ACT 113 123

SOCIAL SECURITY AND WELFARE 14834 15849

. Age pensions and  allowances 4754 4945

.  Disability pensions  and allowances 695 797

(excluding other  pensions and allowances  for ex-service personnel)

CHANGE 1985-86 COMMENT

ON SAME BUDGETED .

PERIOD CHANGE .

LAST YEAR

$m % %

35  -13  67

15. 1  -12.3  7.7

17.3  -14.3  9.7

10 9.1 11.6 . Lags in superannuation

payments together with  higher than budgeted. April  1986 receipts.

1015 6.8 7.0

191 4.0 5.9 . Lower take-up rate than

forecast at Budget time.

102 14.7 10.5 .  Higher than expected

rate of determination  of claims and appeals  for disability pensions,   partly offset by a lower  level of arrears payments  for war/defence widows  pensions.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

. Service pensions 1242 1354

.  Invalid pensions and  allowances  1224 1393

. Widow-' s pensions 750 777

. Supporting parents'  benefit 888 1032

.  Family allowances 1254 1233

.  Unemployment benefits 2471 2568

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE LAST YEAR

$m % %

111 9.0 7.0 .  Higher number of service

pensioners than expected  at Budget time.

169 13.8 15.4 .  Lower take-up rate than

expected at Budget time.

27 3.6 4.8 .  Lower take-up rate than

expected at Budget time.

144 16.2 15.3 . The rate of increase

reflects higher than  budgeted numbers of  recipients.

-21 -1.6 -2.0

97 3.9 0.2 . The number of recipients

has been above projections  to date and average  benefit levels are also  above estimates for the  period.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

Sickness benefits 301 323

Special benefits 82 89

HOUSING 1223 1246

. State Government Loan  Council Program  nominations for public  housing

- States 370 392

- Northern Territory 33

CHANGE 1985-86 COMMENT

ON SAME BUDGETED PERIOD CHANGE LAST YEAR

$m % %

c -

22 7.3 10.0

7 8.0 4.7 .  The cumulative rate of

increase is expected to  decline over the year as  the carer's pension  becomes subsumed ,by the

spouse carer's pension and  is paid out of applicable  Social Security pensions.

22 1.8 5.2

22 5.9 13.1 . Several States commenced  receiving housing  nominations late in the  year because of delays in

satisfying the CSHA  matching requirements.

33 Â·Â· Â·* .  Did not receive housing

nomination payments in  1984-85.

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION Ã¢ÂÂ¢  ;

TO

Ã¢ÂÂ¢  - Ã¢ÂÂ  Â·  , APR APR

1985 1986

:  . - Â·  Ã¢ÂÂ  Â·  ;Â· . Â·  Â· Ã¢ÂÂ  Â· Â· ;  Ã¢ÂÂ  $m $m

. Commonwealth/Stahe 531 561.

Housing-Agreement  grants to the States  and NT for public  housing

. First Home Owners  Scheme 235 199

.  Housing in the ACT 23 4

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD  LAST YEAR CHANGE

$m % %

30 5.6 5.0 .  The higher than budgeted

increase to April 1986  reflects lower than  average payments in the  first five months of

1984-85. .

-36 -15.3 .. .  Lower than expected

approval rates under the :   Scheme.

-19 -81.3 -17.8 . Nil drawdown in the loans  for housing component of  this item so far this year  compared to $12.05m in the  ,  same period last year and

conservative  implementation of the  revised loans scheme in

.  .  1985-86.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

CULTURE AND RECREATION 638 720

.  Australian Broadcasting  Corporation  314 363

. Special Broadcasting  Service 38 43

TRANSPORT AND COMMUNICATION 1446 1432

. Air transport sites,  buildings and works ,86 120

/

CHANGE 1985-86 COMMENT

ON SAME BUDGETED J

PERIOD CHANGE  LAST YEAR

$m % %

82 12.9 12.2

49 15.7 13.8 .  High level of operational  expenditure including  redundancy payouts in the  first half of this

financial year,  together  with capital expenditure  payments associated with  the use of the AUSSAT

satellite.

5 13.3 17.7 .  Timing effects. Expect

to achieve budget estimate.

-14 -1.0 -6.1

34 39.9 29.1 .  Variation in progress of

capital works being  undertaken, principally at  Brisbane and Perth  airports.

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

APR APR

1985 1986

Ã¢ÂÂ   Ã¢ÂÂ   Ã¢ÂÂ  Ã¢ÂÂ  $m $m

.  Road grants to the States  and the NT - under the Australian 687 614

:  Land Transport Program

- Australian Bicentennial  Road Development (ABRD)  program 309 371

CHANGE 1985-86 COMMENT

ON SAME BUDGETED !  '

PERIOD CHANGE LAST YEAR

$m % %

-73 -10.6 -2.4 . Continuing effect of  temporary administrative  delays experienced earlier  in the financial year  associated with the

introduction of the  Australian Land Transport  Act 1985 on 1 July 1985.

62 20.0 5.5 .  Continuing effect of

"catch-up" expenditure on  a backlog of projects in  the early months of

1985-86. Cumulative  percentage growth is  expected to decline in the  final months of 85-86 due

,  to high expenditpre in May

and June 1985.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

WATER SUPPLY, ELECTRICITY  AND GAS 72 52

.  Electricity supply in  the NT 66 52

INDUSTRY ASSISTANCE AND  DEVELOPMENT 811 970

. Assistance to the Wheat  Industry 20 110

.  Export Market Development  Grants , 84 90

Assistance to the Wool  Industry 20 32

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE LAST YEAR

$m % %

-20 -20.3 -53.0

-14 -20.6 -34.0 . Reflects better than  expected progress with  capital works.

160 19.7 5.3

89.9 449.5 569.6

6 7.0 -34.6 .  Budget estimate reflects a

large one-off payment made  in June 1985 to reduce a  backlog of claims.

12 57.7 -3.2 .  Reflects increased

expenditure of $5m for the  Wool Promotion  Contribution, and timing  effects in the receipt and

disbursement of wool tax.

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

APR APR

1985 1986

$m $m

.  Petroleum Products  Freight Subsidy Scheme 105 20

LABOUR AND EMPLOYMENT 877 803

.  .  Training programs 120 115

(excluding salary and  administrative costs)

. Community Employment  Program (excluding  salary and administrative costs)

302 208

.  Employer incentives  (excluding salary and  administrative costs)

121 92

CHANGE 1985-86 COMMENT

ON: SAME ; BUDGETED  PERIOD CHANGE LAST YEAR

$m % % Â· Â·  Ã¢ÂÂ

-86 -81.5 -84.2

-74 -8.4 -2.7 Â·

-5 -4.0 17.0 .  Lower than anticipated  approvals in skills  training programs,   unexpected delays in the  take-up of Australian  Traineeships and slow  ,  take-up rate in adult

training programs.

-94 -31.2 -28.9

-29 -23.9 -1.6 . Lower approvals in the  Jobstart program  combined with the slow  submission of payment  claims.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

LEGISLATIVE SERVICES 242 277

.  Parliament House Construction Authority 86 144

FOREIGN AFFAIRS AND OVERSEAS  AID 962 1014

. Aid payments to PNG 297 301

.  Other components of  bilateral aid 280 253

Multilateral aid 157 171

CHANGE 1985-86 COMMENT

ON SAME BUDGETED PERIOD CHANGE LAST YEAR

$m % %

35 14.4 7.4

58 66.8 39.4 .  Better rates of progress

with construction during  the course of 1985-86 when  compared to 1984-85.

52 5.4 4.1

4 1.2 1.6

-27 -9.7 -3.1 . Delays in wheat shipments  and lower appropriation in  1985-86 of Emergency  Humanitarian Relief

funds. Mainly  difficulties in the  administration of food aid  with recipient countries,

especially in Africa,   leading to low expenditure  to date.

14 9.1 11.5

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

GENERAL AND SCIENTIFIC  RESEARCH NEC 410 435

. Australian Atomic  Energy Commission

35 38

.  CSIRO 293 308

ADMINISTRATIVE SERVICES 1605 184 5

.  Rent - civil departments 137 184

.  Net superannuation  payments  - Commonwealth  superannuation

departmental 407 453

CHANGE 1985-86 COMMENT

ON SAME BUDGETED :  "

PERIOD CHANGE :

LAST YEAR

$m % %

25 :  6.0 4.7

Ã¢ÂÂ   Ã¢ÂÂ  Â·  .  /  '  '  ,  _

3 10.1 6.7 .  Salary award increases.

15 5.1 3.6 .  Price and salary increases.

240 14.9 10.2

48 34.9 39.8 .  Reflects a lag in the

renewal of new leases.

46 11.3 13.2 . A small portion only of the

arrears arising from the  Carpenter Case will be  paid this financial year.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

- Other 108 CR 98 CR

- Total 299 355

.  Taxation Administration 325 398

.  Construction Services 158 175

. Property and Management  .  Services 97 127

.  ACT - General Administration 48 69

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE LAST YEAR

$ m  % %

10 9.3 -6.3

56 18.5 21.3

Lower than expected  receipt of superannuation  contributions from  Approved Authorities so

far this year due to  timing factors.

72 22.2 12.1 .  Increase in interest on

taxation overpayments.

17 10.4 5.6 .  Increases in the cost of

consultant work for  approved work projects.

30 30.3 20.5 .  Increases in electricity  tariffs on Commonwealth  owned buildings.

21 44.1 27.8 . Reflects inclusion of Belconnen Mall operating  expenses ($2.5m) due to  winding up of CCDA, and

timing effects.

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS  TO

APR APR

1985 1986

$m $m

PAYMENTS TO OR FOR THE STATES,  NT AND LOCAL GOVERNMENT AUTHORITIES 10627 11504

.  Tax sharing grants/  financial assistance  and Temporary/Special grants - States 7662 8331

. Identified health grants - States 1162 1252

.  State Government Loan 867 934

Council Program  (excluding Housing  nominations and  offsetting Sinking Fund  Receipts)

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE LAST YEAR

$m % %

877 8.2 6.9

669 8Â·7 8,1 . Special and Temporary

Assistance grants are  being paid on a weekly  basis this year whereas  last year they were paid

in full during June.

90 7.8 7.8

67 7.8 -4.6 . Accelerated payments were  made earlier in the year  as several States had not  then satisfied the

requirements for receiving  payments under the Housing  Nomination arrangements.   Also, State Domestic  Raisings were not brought

to account until the end  of 1984-85.

FUNCTION/ Â· CUMULATIVE OUTLAYS

DESCRIPTION TO

APR APR

1985 1986

Â· Â·  Â·  . $m $m

.  General revenue assistance  to local government 487

.  Tax sharing grants,  identified health  .  grants and debt

charges assistance/  Financial assistance  grants - Northern Territory 468

'  "  -. .  . Â· Â·

' ’ Ã¢ÂÂ

.  NT General Capital  '  Assistance (excluding  ;  /Â· .Housing nominations and Repayments) 116

535

473

112

CHANGE 1985-86 COMMENT

ON SAME BUDGETED  PERIOD CHANGE :

LAST YEAR

$m % %

49 10.0 9.9

5 1.0 2.5 .  Reflects the pattern of

payments for Debt Charges  Assistance in 1984-85  which were paid on an  emerging cost basis.

-4.- -3.5 0.7 . The lower proportion of expenditure to date under  this program, when  compared to last year,  is  -  offset by higher

expenditure to date under  the State and NT Loan  Council (Public Housing  Nominations) program.

FUNCTION/ Â· ’  Ã¢ÂÂ   "  - CUMULATIVE OUTLAYS ' CHANGE 1985-86 '  COMMENT

DESCRIPTION M : : TO ON SAME BUDGETED

i PERIOD CHANGE

APR APR LAS/ÃÂ YEAR

1985 1986

$m $m $m % %

PUBLIC DEBT INTEREST 4595 5916 1321 28.8 18.9 . Reflects mainly a

'  different pattern of

within-year Treasury Note

.  issue. In addition, the

average yield on Treasury  Notes has been higher than  estimated at budget time

:  and the value of the

Australian dollar against  overseas currencies has  generally been lower. The  year-to-date increase is  expected to decline over

the final two months of  the financial year.

OUTLAYS SPREAD ACROSS  FUNCTIONS

Departmental and  Defence Force wages  and salaries 4527 5038 511 11.3 11.2

National Capital  Development Commission  (NCDC) - Construction 154 170 16 10.4 12.8 .  Uneven pattern of payments

inherent in construction  activity.

TOTAL OUTLAYS 52434 57769 5335 10.2 8.4

COMMONWEALTH GOVERNMENT  STATEMENT OF FINANCIAL TRANSACTIONS 1985-86  $ MILLION

MINISTER FOR FINANCE

BUDGET MONTH OF 10 MONTHS TO 10 MONTHS TC

ESTIMATE APRIL 1986 30.4.86 Ã¢ÂÂ  30.4.85 1985-86

OUTLAYS

Defence, 6,535 473.5 5,132.4 '  4,600.4

Education 4,944 407.9 '  4,306.6 ’  3,930.0

Health ' 6,701 .622.5 5,724.5 Ã¢ÂÂ¢  5,074.3

Social Security and Welfare 19,077 1,881,0 15,848.9 14,834.4

Housing . 1.397 ,  , 140.9 1,245.6 1,223.3

Urban and Regional Development (ncc) and the  Environment 38 0.4DR 38.1 16.7

Culture and Recreation 849 74.6 720.1 Ã¢ÂÂ¢  637.8

Economic Services -Transport and Communication 1,785 167.3 1,432.5 1,457.8

Water Supply, Electricity and Gas 55 8.5 51.7 72.0

Industry Assistance and Development 1,256 140.3 970.3 810.7

Labour and Employment 1,102 91.2 803.1 876.7

Other Economic Services 144 12.6 Â·  ‘ 133.7 116.2

General Public Services -Legislative Services 325 26.1 . 276.7 241.8 .

Law, Order and Public Safety 454 45.6 371.0 342.7

Foreign Affairs and Overseas Aid 1,332 149.8 1,013.9 961.7

General and Scientific Research (nec) 480 41.3 434.7 410.2

Administrative Services 2,176 213.3 1,845.0 1,605.5

Not allocated to Function - Â·

Payments to or 1  for the States, the Northern Territory and Local Government Authorities (ncc) 13,531 1,235.7 11,504.1. 10,627.4

Public Debt Interest 6,724 446.4 5,916.0 4,594.7

Allowances for Prospective Wage and Salary Increases (non-Defencc) 162 - - -

'  Total Outlays 69,067 6,178.1 '  57,768.8 52,434.2

RECEIPTS

Income Tax - Individuals - Gross PAYE 28,850 2,469.6 23,524.7’ 20,878.0

- Rc/.untlti 2,380DR 69.2DR 2,378,3D l 1,984.9D!

'  - Net PAYE 26,470 2,400.4 21,146.4 18,893.1

- Other 5,760 3,887.4 4,878.0 3,782.6

- Prescribed Payments 460 47.4 423.4 343.6

- Companies Ã¢ÂÂ  6,440 313.1 3,688.2 3,008.3

- Withholding Tax - Dividends/Mining 180 22.9 167.0 126.7

- Interest 300 .  31.2. 287.2 197.7

Sales Tax Ã¢ÂÂ 6,000 ,579.3 4,751.2 4,002.7

Excise Duty - Crude Oil and LPG '  4,368 169.0 3,874.1 ) 6,832.6

- Other 4,609 597.7 4,090.8 )

Customs Duty - Imports 3,209 268.7 2,800.9 2,392.2

- Coal Exports 70 5.5 49.4 49.7

Bank Accounts Debits Tax 200 15.8 165.3 155.9

ACT Taxes and Charges 145 11.1 131.3 114.8

Other Taxes, Fees and. Fines 416 .  ’ 53.5 307.1 279.1

Remissions 0.1DR 0.3D 3 0.3D1

Total Taxation Revenue 58,627 8,403.1 46,760.1 40,178.7

Interest, Rent and Dividends ' 5,519 287.2 Â· 3,573.1!

2,861.9

Net Receipts from Government 2 ,  0.5DR .  1.5 3.3

Enterprise Transactions

Total Receipts 64,149 8,689.7 50,334.7, 43,043.9

'  DEFICIT

4,919 2.511.6DR 7,434.0 9,390.3

continued over

2 Â·

BUDGET MONTH OF 10 MONTHS TO 10 MONTHS TO

.  .  ,

ESTIMATE APRIL 1981 30.4.86 30.4.85

FINANCING TRANSACTIONS

Domestic Financing .

I  Treasury Bonds - Official 802.3 ,334.4 2,030.1 .

- Non-Official . 901.9DR 1,608.8 3,643.0

- Less Discounts - 166.SDR 211.3DR

1  .  Sub-total ) 99.6DR 1,776.7 5,461.8

.  Treasury Indexed Bonds  - Official _ _ -

- Non-Official _ 255.9 " -

- Less Discounts - 32.1DR -

.  Sub-total ) - 223.8 -

Treasury Notes  i  - Official 635.8DR 2,141.8 780.6

- Non-Official 1,918.SDR 2,363.5 1,464.9

Sub-total ) 4,919 2.554.3DR 4,505.3 2,245.5

Australian Savings Bonds ) Ã¢ÂÂ   f  , 78.0DR 1,936.0DR 422.6DR

Other Borrowings from Reserve Bank ) - - '  -

Use of Cash Balances ) 24.0 1,162.8 1,525.7

Other Loans and Financing Transactions ) 231.7 501.0 45.9

Total Domestic Financing 2.476.2DR 6,233.6 8,856.3

Overseas Financing ) 35.3DR 1.200.6 533.9

Total Financing Transactions 4,919 2.511.6DR 7.434.0 9.390.3

OUTSTANDING SHOUT TERM DEBT AND CASH BALANCES

$ MILLION

Other Borrowings from Reserve Hank  Treasury Notes Cash Balances with Reserve Bank - Net Public Account.

- Net Other Accounts

NIL

7,400.0

149.OCR  751.3

M S KEATING

Secretary to the Department of Finance  -  20 May 1986

P E T E R  WAI.SII

Minister for Finance

