f

MINISTER FOR FINANCE

EMBARGO

PRESS RELEASE Ã¢ÂÂ   i o .

NO: 38/86

S T A T E M E N T  OF COMMONWEALTH GOVERNMENT FINANCIAL T R A N S ACTIONS -

S E P T E M B E R  1986

M I N I S T E R  FOR FINANCE, SENATOR THE HON PETER W A L S H

The C o m m o n w e a l t h  Government's Statement of Financial T r a n s a c t i o n s

for Se ptember 1986 is now a v a i l a b l e . The following table provides a

comparison of the aggregates for the m o n t h  with the results for the

same period of 1985-86 and the budget estimates for 1986-87.

M o n t h  of September

1986

3 M o n t h s  to

September 1986

B u d g e t e d  Increase

for 1986-87 on

1985-86 Outc ome

Actual Inc rease

on September

1985

Actual Increase

on same

peri od of

1985-86

$m % $ m % %

Outlays 7179 25.1 1 9 6 7 7 14.8 6.9

Receipts 4052 9.8 1 5 493 11.9 11.0

Deficit 3127 4 1 8 4

2

v f W - t r

j :

D E F I C I T

Followingfstfie A'uqust 1986 monthly surplus of $1651m, the month of

September .1986Â·^recorded a deficit of $ 3 1 2 7m. By comparison the

deficit' i n '  S e p t e m b e r  1985 ‘was ‘$2 050m., ^The cumu 1 a tji vef'jre s u 11 for the

three mont h s  to- September 1986 was a deficit of $4184m, compared

w i t h  a d e f i c i t  of $ 3 297m for the corresponding period in. 1985. The

timing of some m a j o r  outlay programs in September has altered the

m o n t h l y  and c u m u l a t i v e  deficit pattern relative to that observed in

recent y e a r s . The September 1986 cumulative results have been

boosted by more t h a n  $0.6 billion on account of the changes to the

timing of c e r t a i n  payments. The same .factors ,will be .acting to

reduce the O c t o b e r  1986 results by a similar amount. Further

details are p r o v i d e d  under the section on outlays later in this

S t a t e m e n t .

. Ã¢ÂÂ  * -

The altered p a t t e r n  in the cumulative deficit relative to previous

y e a r s  is also e v i d e n t  in the graph below. -

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

8 6 / 8 7 10 -

8 -

8 5 -

6 -

5  -

8 2 - 8 3

8 1 - 8 2

JU L AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

*  Budgeted d eficit $ 3 5 0 3 m

OUTLAYS

Outlays of $ 7 1 7 9m for the month of September 1986 were up $1438m or

25.1% on September 1985. About half of this increase can be

explained by an additional payment associated with the timing of

paydays in September 1986 for the following p r o g r a m s :

. Financial As s i s t a n c e  grants to the States and the Northern

Territory - an extra weekly payment made in September 1986

compared w i t h  September 1985 (estimated effect $ 262m) ; and

. Social Secu r i t y  payments for Age Pensions and Al l o w a n c e s ,

Supporting Parents' B e n e f i t s , Invalid Pensions and Widows

Pensions - an extra payment made in September 1986 compared wi th

September 1985 (estimated effect $ 3 8 5 m ) .

As a result of the additional payments in September 1986, outlays on

the above programs will be reduced by a similar amount in October

1986. .  1

The September 1986 results also includes $ 1 5 5m in Tertiary Education

recurrent payme n t s  reflecting revised payment a r r a n gements. By

comparison there were no corresponding payments made in September

1985.

The additional payments mentioned above have also influenced

cumulative co m p a r i s o n s  between the September quarters of 1986 and

1985. Cumula t i v e  outlays for the three m o n t h s  to September 1986 of

$19677m were up $ 2 5 3 6m or 14.8% on the corresponding period last

year compared w i t h  a budget estimated average of 6.9% in 1986-87.

Apart from the timing effects mentioned a b o v e , the September results

have been ac c e n t u a t e d  by the higher c o n c e ntration of outlays in the

early part of this financial y e a r , relative to the same time last

y e a r . The reasons for this were detailed in the July and August CFT

. Ã¢ÂÂ *>

4

T h e  m o r e  s i g n i f i c a n t  p r o g  r a m s  w h i c h  h a v e  c o n t r i b u t e d  t o  t h e

c u m u l a t i v e  i n c r e a s e  o f  $ 2 5 3 6 m  i n  o u t l a y s  b e t w e e n  J u l y - S e p t e m b e r  1 9 8 5

a n d  J u l y - S e p t e m b e r  1 9 8 6  a r e  s h o w n  b e l o w .

C u m u l a t i v e  C h a n g e  1 9 8 6 - 8 7

O u t l a y s  t o  B u d g e t e d

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  . C h a n g e

S e p t  S e p t

1 9 8 5  1 9 8 6

F i n a n c i a l  A s s i s t a n c e   a n d  T e m p o r a r y / S p e c i a l

$ m $ m $ m % %

G r a n t s  t o  t h e  S t a t e s

G e n e r a l  R e v e n u e  G r a n t s

2 4 5 4 2 8 4 0 3 8 6 1 5 . 7 9 . 9

t o  t h e  N o r t h e r n  T e r r i t o r y 1 4 0 1 6 5 2 5 1 7 . 9 1 2 . 1

P u b l i c  D e b t  I n t e r e s t 1 6 1 4 1 9 8 1 3 6 8 2 2 .  8 6. 5

A g e  p e n s i o n s

R o a d  G r a n t s  t o  t h e

1 3 2 1 1 6 4 1 3 2 0 2 4 .  3 7 . 1

S t a t e s  a n d  t h e  N T 2 3 5 3 5 8 1 2 3 5 2 .  2 0 . 1

U n e m p l o y m e n t  B e n e f i t s   I n v a l i d  P e n s i o n s  a n d

7 4 1 8 4 6 1 0 5 1 4 . 1 1 4 .  0

A l l o w a n c e s 3 6 5 4 8 7 1 2 2 3 3 . 4 1 3 . 2

F a m i l y  A l l o w a n c e s 4 4 2 3 0 4 - 1 3 8 - 3 1 . 3 - 1 1 .  2

m o r e  d e t a i l e d  f u n c t i o n a l  t a b u l a t i o n o f  t h e v a r i a t i o n s  o n a

c u m u l a t i v e  b a s i s  t o g e t h e r  w i t h  e x p l a n a t i o n s ,  i s  p r o v i d e d  a t

A t t a c h m e n t  A .

RECEIPTS

In the month of September 1986, total receipts were $ 4052m, 9.8%

higher than in September 1985.

Total receipts for the September quarter 1986 were $15,493m, 11.9%

higher than in the corresponding months of 1985. Taxation receipts ,

which are expected to comprise over nine-tenths of total receipts in

1986-87, were $ 1 3 , 417m, an increase of 9.2% over the same p e r i o d .

5

Gross PAYE receipts were 16.4% hiqher than in the first quarter of

1985-86. The rate of growth is expected to slow markedly after the

December 1986 income tax cuts take effect; the estimated increase

for 1986-87 is 10.2 per cent. Refunds were 3.6% above their level

in the corresponding period of 1985 and net PAYE coll e c t i o n s  were

18.6% h i g h e r .

Collections from non-PAYE (other) individuals were 13.0% below those

for the first quarter of 1985-86. However, as only about 4% of such

I  .

t a x e s  a r e  c o l l e c t e d  in the f i r s t  q u a r t e r . o f  e a c h  y e a r , l i t t l e

s i g n i f i c a n c e  c a n  be a t t a c h e d  to this d e c l i n e .

C o l l e c t i o n s  u n d e r  the P r e s c r i b e d  P a y m e n t s  S y s t e m  (PPS) w e r e  43.5%

g r e a t e r  t h a n  in the c o r r e s p o n d i n g  three m o n t h s  of 1985. T h i s  s t r o n g

g r o w t h  is a t t r i b u t a b l e  p r i n c i p a l l y  to an i n c re a s e  f r o m  10 to

15 p e r  c e n t , from 1 Ju l y  1986, in the basic rate of d e d u c t i o n .

C o l l e c t i o n s  f r o m  c o m p a n y  tax w e r e  12.8%. above the s a m e  p e r i o d  in.

1985, a r esult c o n s i s t e n t  w i t h  the B u d g e t  e s t i m a t e  for 1 9 8 6 - 8 7  a f t e r

a l l o w a n c e  for the late i m p a c t  in the ye a r  of the i n t r o d u c t i o n  of

m o r e  t i m e l y  tax p a y m e n t s  for c o m p a n i e s  w i t h  s u b s t i t u t e d  a c c o u n t

p e r i o d s .

W i t h h o l d i n g  tax c o l l e c t i o n s  w e r e  19.5% h i g h e r  t h a n  in the S e p t e m b e r

q u a r t e r  1985, r e f l e c t i n g  p r i n c i p a l l y  the impact of t h e  d e p r e c i a t i o n

of the $ A  o n  i n t e r e s t  p a y m e n t s  d e n o m i n a t e d  in f o r e i g n  c u r r e n c i e s .

S a l e s  tax c o l l e c t i o n s  i n c r e a s e d  s t r o n g l y  in the m o n t h  of S e p t e m b e r

1986, r e s u l t i n g  in S e p t e m b e r  q u a r t e r  c o l l e c t i o n s  1 1 . 3 %  h i g h e r  than

for the c o r r e s p o n d i n g  q u a r t e r  of 1985. The ful l  i m p a c t  of the

B u d g e t  s a l e s  tax i n c r e a s e s  (which took e f f e c t  f r o m  20 A u g u s t ) w i l l

n o t  sho w  up in c o l l e c t i o n s  u n t i l  O c t o b e r .

6

Collections from the excise duty on crude oil and LPG, which were

exceptionally low in July and started to recover in A u g u s t , picked

up again in September 1986 because of increaised p r o d u c t i o n  with the

resumption of e x p o r t s . Collections from the traditionally excisable

products continued to grow strongly in September 1986 mainly because

of higher excise duty rates now applying to refined petroleum

products.

Receipts from customs duty on imports were 3.4% higher than in the

corresponding months of 1985.

1  I n terest, Rent and Dividends' were 33.0% higher than in the

corresponding period in 1985, reflecting mainly the increased

payment from the Reserve B a n k , details of which were provided in the

August CFT s t a t e m e n t . Â·

Canberra

22 October 1986

7

ATTACHMENT A

SUMMARY OF MAJOR OUTLAYS AND MAIN VARIATIONS IN OUTLAYS BETWEEN SEPTEMBER QUARTER 1986 AND   SEPTEMBER QUARTER 1985

FUNCTION/ CUMULATIVE OUTLAYS CHANGE 1986-87 COMMENT

DESCRIPTION TO O N  SAME BUDGETED

PERIOD CHANGE

SEPT SEPT LAST YEAR

1985 1986

$m $m ' $m % %

DEFENCE 1430 1593 164 11.4 11. 1

.  Defence Force P e r sonnel 455 499 44 9.7 2.8 .  Cumulative comparisons

affected by Defence Forces   Remuneration Tribunal  salaries decision which  was not paid until Feb

198 6,.

.  Defence Force

Retirement and  Benefits Death

89 106 17 19. 1 15. 3 .  The budqet estimate

incorporates the Govt  decision to discount  indexed pensions by 2%  from October 1986.

8

SUMMARY OF MAJOR OUTLAYS AND

FUNCTION/  DESCRIPTION

. Defence, equipment and   Stores

.  Defence facilities

.  Defence Industrial   Capacity

General administration   and operational

MAIN VARIATIONS IN OUTLAYS BETWEEN SEPTEMBER 1986 AND SEPTEMBER 198 5 :

CUMULATIVE OUTLAYS CHANGE 1986-87 COMMENT

TO ON SAME BUDGETED

PERIOD CHANGE

SEPT SEPT LAST YEAR

1985 1986

$m $m $m % %

506 515 9 ÃÂª. 8 15. 7 .  Timing effects resulting '

in payments in the .  .

September 1986 quarter .

being proportionally less.Â·   than is anticipated for :

the full y e a r .  :

58 98 40 68. 8 23. 5 .  Reflects a higher .

concentration of  expenditures in the early   part of the financial year.

79 92 13 16.9 -25. 6 .  Late commencement on a

number of major projects   in 1986-87, leading to a

delay in recoveries w h i c h '  offset expenditure. .

81 109 27 33. 8 50.0 .  On payment of first Fringe

.  Benefit Tax instalment \

later this y e a r ,  |

cumulative expenditure to-   date will be nearer budget

estimate.

FUNCTION/ DESCRIPTION

CUMULATIVE OUTLAYS  TO

SEPT SEPT

1985. 1986

$m $m

EDUCATION 1318

.  Tertiary Education  (Universities) - Grants to the States 361

- Australian National University 44

Ã¢ÂÂ   - Total 405

.  Schools Commission programs - Government schools 163

- Non-Government schools 179

- Other 18

- .  Total. 360

.  Schools in the ACT .

- Government Schools 42

- Non-Government Schools 9

- School Transport 1

- Other . 1

53

14 8 5

387

47

4 3.3

173

203  20

39 5

50 9 1

Total 61

9

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m % %

167 12. 7 .  5. 9

.  Cumulative comparison  affected by Academic

26 7.2 -0.2 Salaries Tribunal increase

which became effective .

2 4.9 0. 9 late in the 1985-8,6

28 7. 0 3. 5 financial y e a r .  .

.  Mainly due to revised

10 5. 9 -1. 2 p ayment arrangements for

24 13.5. 3.8 Government schools which

2 11. 9 -13. 2 commenced in July 1986.

36 10.0 2.9

.  Reflects early release of

9 20. 2 8.1 funds in August 1986. .

0. 9 5. 7

- - 1 5 . 9

- 1 - 7 6 .  7 - 6 .  3

8 1 4 . 6 7. 7

FUNCTION/ . CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

1985 1986

$m :  $m

. Tertiary Education 87 96

Assistance Scheme .

Secondary allowances 26 45

10

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR .

$m %

9 10.4 23.3 . The Budget estimate

.  incorporates rate changes

Â·  and increases in student

numbers in the second half

of the financial y e a r .

20 76.0 16.2 . The 50% increase in

Ã¢ÂÂ¢  maximum allowance levels

which took effect from

.  January 1986 is not

reflected in 1985 ;

September guarter figure.

'  ÃÂ¯

FUNCTION/ .  .  CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

1985 :  1986

$m $m

HEALTH .  1785 1990

. Medicare medical benefit 673 .  745

advances to the Health

Insurance Commission (HIC).

. .  Advances to the .  30 31

Health Insurance Commission .

- Administration '

11

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE .

LAST Y E AR

im % %

205 11. 5 6. 7 -

71 10.6 10.6 Ã¢ÂÂ¢  '  .  ÃÂ¯

1 1.7 13.4 . Reflects the i rregular

nature of payments related  to some major items of

administrative expenditure.

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT S E PT

.  1985 1986

$m $m

. Medical services and 52 52

benefits for veterans  and dependants

.  Medicare hospital 341 379

payments

. Pharmaceutical services 174 2 l 8

and benefits ,

. Nursing home and domiciliary

care .

- Nursing home benefits 170 188

- Nursing home assistance 76 83

- Other 35 30

- Total 281 301

Health Services in the ACT 46 51

12

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD .  CHANGE

LAST YEAR

$ m  % %

-1 -1.5 2.5

38 11.2 -4.0

4'4 2 5.0 8.7

18 10. 3 5. 6

7 9.2 7. 4

-5 -13. 6 -7. 0

20 7.0 4.7

6 12. 7 9. 0

B u d g e t e d  c h a n g e  is a f f e c t e d   by the o ne -o ff  p a y m e n t  in;

April 1986 to NS W Ã¢ÂÂ Ã¢ÂÂ

h o s p i t a l s  for the i n c re a se   in V i s i t i n g  M e d i c a l  :

O f f i c e r s  fees. .  Â· .

B u d g e t  e s t i m a t e s  p r o v i d e   for c h a n g e d  b e n e fi t   a r r a n g e m e n t s  w hich are to   take effe ct f r o m N o v e m b e r

1986. .  .

R e f l e c t s  g r e a t e r  d e m a n d   in the early m o n t h s

of 1986-87. -  :

FUNCTION/ ' CUMULATIVE OUTLAYS

DESCRIPTION TO .

.  SEPT SEPT

1985 1986

$m $m .

SOCIAL SECURITY AND WELFARE 4500 5163

. Age pensions and 1321 1641

allowances .

. Disability pensions 252 271

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

13

CHANGE 1986-87 .  COMMENT

ON SAME B UDGETED Ã¢ÂÂ

PERIOD  LAST YEAR CHANGE Â·

$m % .  %

663 14. 7 8. 2

320 24.3 7.1 .  Reflects additional pay

period in the September quarter 1986.

7.7 6.1 19

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

.  1985 198 6

.  $m $m

. Service pensions 419 460

. Invalid pensions and

allowances

365 487

.  Widow's pensions 208 253

.  Supporting parents'  benefit .  269 356

. Family allowances 442 304

.  Unemployment benefits 741 .  846

. Sickness benefits . 97 103

. Â·  Special benefits 26 3 0

COMMENT CHANGE 1986-87 ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m %~ % Ã¢ÂÂ  ;

42 9.9 8. 8

122 33.4 13.2 .  Reflects additional pay

period in the September

quarter 1986.

45 21. 8 3. 7 .  Reflects additional pay

period i n .the September  quarter 1986.

8 7 3 2.4 9. 9 .  Reflects additional pay

period in the September   quarter 1986.

138 -31.3 -11. 2 .  Two fewer pay periods in

September quarter 1986   compared with September   quarter 1985.

105 14. 1 14.0

5 5.5 4.6

3 12. 8 -0.1 .  Expected savings from

Budqet measures will only   impact on outlays later in

the year.

FUNCTION/ .  CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

1985 1986

Ã¢ÂÂ   $m $m

HOUSING AND COMMUNITY AMENITIES 346 386

. Housinq Assistance - 264 263

States and .

Northern Territory .  .

.  Assistance to .  70 51

First Home Buyers .

Housing in the ACT 6 Cr 3

15

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR ;

$m %

40 11.6. 10.2

.. -0.2 15.3

-19 -27.4 -12.8

9 154.6 -71.9

(See State and Northern  Territory Government Loan  Council Proq r a m s .)

Reflects the continuing .

high level of housinq

interest rates and the  decline in the numbers Ã¢ÂÂ  ;

eligible for assistance  under fixed income l i m i t s .

NCDC expenditure on :

housinq in the ACT tends

to be i r r e g u l a r .

FUNCTION/ '  CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

1985 1986

$m $m

CULTURE AND RECREATION 220 286

.  Australian Broadcasting 106 174

Corporation

Special Broadcasting  Service 13 18

16

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST Y EAR

$m % %

66 29. 9 5. 2

69 64.7 -4.0 . Reflects annual contractual

payments made to AUSSAT >

for the hire of satellite:

t r a n s p o n d e r s , together ;

with changes in the i

pattern of dr awdowns in j

1986-87 compared with i

1985-86. .

6 44.4 2.4 .  (As for the ABC a b o v e .)

FUNCTION/ DESCRIPTION

CUMULATIVE OUTLAYS  TO

SEPT SEPT

1985 1986

$m $m

TRANSPORT AND COMMUNICATION 353 528

.  Air transport s i t e s ,

buildings and works

29 42

.  Road grants to the States

and the NT

- under the Australian  Land Transport Program 117 214

- Australian Bicentennial  Road Development (ABRD)  program .

118 145

17

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST Y E AR

$m % %

176 49. 7 -5. 1

13 43.7 -12.7 .  Reflects progress on the

Brisbane and Perth airport  development p r o j e c t s ,  and  land acquisition for the  second Sydney airport.

.  Reflects both relatively

low expenditure early in

97 82. 5 .  .  1985-86, and the payment

.- early in 1986-87 of

outstanding .19 85-86 claims.

26 22.3

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

1985 1986

$m $m

INDUSTRY ASSISTANCE AND .

DEVELOPMENT 325 328

. Fertilizer Subsidies 10 8

.  Textile Clothinq and 20 '  28

Footwear Assistance

Export and Trade Promotion 17 57

18

i Ã¢ÂÂ

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m % %

3 0.9 -12.8

-2 -23. 6 20. 1 . Reflects within-yea r

fluctuations in the demand  for fertilizers.. .

8 37. 5 -20. 7 . Activity in textiles

industry significantly  higher than anticipated  during the first quarter  of this financial year.

40 237. 8

00  f —1  1

. Reflects the me chanism for

funding the Australian  Trade Commission (created  on 6 January 1986) which :

has led to 4 months

expenditure being drawn  down in the 3 mont hs to

September 1986 and the ,

clearance in July 1986 of

a backlog of claims which

existed at the end of June

1986 under the Export

Market Development Grants'  S c h e m e .

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS   TO

SEPT SEPT

1985 1986

$m $m

LABOUR AND EMPL OYMEN T 232 262

. Training programs 37 43

.  Job Creation and

Employment Assistance 90 Ã¢ÂÂ¢  101

19

CHANG E 1986-87 CO MME NT

ON SAME BUDGETE D

PERIOD CHANGE

LAST YEAR

$ m  % %

30 12. 7 4.2 .

6 17.3 40.3 . Lower intake under the

Au str al ian  T r a i n e e s h i p s  S y s t e m  in the early part

of 1986-87.

11 11.7 -15.0 . Timing of e x p e n d i t u r e

under the C E P  is uneven.

20

FUNCTION/ .

DESCRIPTION

CUMULATIVE OUTLAYS  TO CHANGE 1986-87

ON SAME BUDGETED

PERIOD CHANGE

COMMENT

SEPT 1985

SEPT 1986

LAST YEAR Ã¢ÂÂ¢  Â·Ã¢ÂÂ

$ m $ m $ m  % %

V

L E G I S L A T I V E  S E R V I C E S 8 7 1 1 5 2 8  3 2 . 7  3 7 . 4

?

. P a r l i a m e n t  H o u s e

C o n s t r u c t i o n  A u t h o r i t y

5 0 73 2 4  4 8 . 1  5 7 . 0

21

FUNCTION/ C U M U L ATIVE OUTLAYS C HANGE 1986-87

DESCRIPTION TO ON SAME BUDGETED

PERIOD C HANGE

SEPT SEPT L A ST YEAR

1985 1986

$m $m $m % %

FOREIGN AFFAIRS AND OVERSEAS AID 244 241 -3 -1. 2 -2.0

Aid payments to PNG 76 79 3 3.9 2. 6

Other components of  bilateral aid 43 41 -2 -3.9 -7.9

Multilateral aid 48 '  40 -8 -15.9 -19.0

COMMENT

FUNCTION/ DESCRIPTION

CUMULATIVE OUTLAYS  TO

SEPT SEPT

1985 1986

$m $m

GENERAL AND SCIENTIFIC  RESEARCH NEC 143 163

.  CSIRO 107 124

. Australian Atomic

Energy Commission

10 '  11

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m % %

20 14.2 5.8

17 15. 9 5. 8 . Cumulative comparison

affected by lower than

usual expenditure early in  1985-86.

1 12.9 7.0 '  . Concentration of

non-salary administrative  expenditure in the e a r l y ,  pa rt of this financial ;

-  y e a r .

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO ,

SEPT SEPT "

1985 1986

.  $m $m

ADMINISTRATIVE SERVICES 555 679 .

. Financial Affairs and 192 231

Fiscal Administration

.  Construction Services 46 54

. Property and Manag ement 29 31

Services

23

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m % %

124 22.3 13. 7

39 20.6 2.5 . Mainly due to a

concentration of  administrative costs early  in the financial year for

both the Australian

.  Taxation Office and the

Australian Customs S e r v i c e .

,  8 16.6 9.7 . Salary payments in 1985-86

increased in the second  half of the financial year

reflecting timing of wage  increases in that y e a r .

2 7 9.0

FUNCTION/, DESCRIPTION

CUMULATIVE OUTLAYS  TO

SEPT SEPT

.19 85 1986

$m $m

Rent - civil departments 44 63

Net superannuation  payments - Commonwealth . 136 161

superannuation departmental

- Other 28 CR 31 CR

- Total 107 129

24

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m  % %

19 44.4 20.6 . Reflects c o n c e n t r a t i o n  of

expendit ure  early in the  financial  year in respect  of lease renewals for 1

Government departments. Â·

25 18.5 16.7

-3 -10.6 8.5

22 20.6 23.0

FUNCTION/ CUMULATIVE OUTLAYS

DESCRIPTION TO

SEPT SEPT

1985 1986

$m $m

PAYMENTS TO OTHER GOVERNMENTS 3828 4284

. Financial Assistance  and Temproary/Special  Grants - States

24 54 2840

.  Identified Health

Grants - States 369 429

.  General Revenue Grants

- Northern Territory 140 165

25

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$m % %

456 11.9 5. 5

386 15. 7 9. 9 . The period to en d-September

1986. includes one extra  payday than was the case

last year.

60 16.4 10.4 . (As a b o v e .)

25 17.9 12.1 .  (As a b o v e .)

FUNCTION/  DESCRIPTION

CUMULATIVE OUTLAYS   TO

SEPT SEPT

1985 1986

$m $m

.  State Government 335 272

Loan Council Prog ram   (excluding housing   nominations)

General Purpose Capital 43 35

Payments - Northern   Territory

General revenue assistance 535 580

to local government

26

CHANGE 1986-87

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

COMMENT ;

$m % %

63 -18.7 -41.1 , ,  Reflects an add it ion al

payday in the period to

September 1986 com pared  with the cor re spo nd ing  period in 1985-86. In

addition, several States  are yet to com me nce

receiving housing  nomination pay me nts  (shown  under the Housing  function) resulting in '

ac ce l e r a t e d  payments under  this progra m in the

earlier part of the year.

-8 -18.7 -41.4 .,  (As a b o v e .)

45 8.5 8. 7

FUNCTION/ DESCRIPTION

CUMULATIVE OUTLAYS  TO

SEPT SEPT

1985 1986

$m $m

PUBLIC DEBT INTEREST 1614 1981

OUTLAYS SPREAD ACROSS  FUNCTIONS .

. Departmental wages 880 954

and salariese

.  National Capital 72 76

Development Commission  (NCDC) - Construction

TOTAL OUTLAYS 17,141 19,667

27

CHANGE 1986-87 COMMENT

ON SAME BUDGETED

PERIOD CHANGE

LAST YEAR

$ m  % %

368 22.8 6.5 . C o n c e n t r a t i o n  of

e x p e n d i t u r e  e ar ly in the   f in an ci a l y e a r w h e r eb y   (r el ative to the   c o r r e s p o n d i n g  p e r io d  l a s t   year) high interest   p a y m e n t s  on T r e a s u r y  b o n d s   w e r e  m ad e in J ul y 1986,

and a larger issue of

T r e a s u r y  notes in this j

f i n an c ia l year. 1

-  o

74 8.4 7.2

5 6.3 17.7 . R e f l e c t s the irregular

natu re of p a y m e n t s   a s so c i a t e d  with   c o n s t r u c t i o n  a c ti vi ty.

2536 14.8 6. 9

COMMONWEALTH GOVERNMENT  STATEMENT OF FINANCIAL TRANSACTIONS 1986-87

M IN IS T E R  FOR FINANCE

S MILLION

BUDGET MONTH OF 3 MONTHS TO 3 MONTHS TO

ESTIMATES SEPTEMBER 30.9.86 30.9.85

1986-87 1986

'  O UTLAYS

Defence 7,415 637.8 1,593.0 1,429.5

Education 5,204 366.8 1,484.5 1,317.7

H e a l t h  '  Ã¢ÂÂ  7,307 607:7 1,989.6 1,785.0

Social Security and Welfare 20,760 1,913.7 5,163.2 4,500.2

H o j s ing 1,510 Ã¢ÂÂ¢  114.6 357.4 348.1

L'roan and Regional Development (ncc) and the  Environment 106 17.5 28.6 2 .  3DR

C u l t u r e  and Recreation 950 103.6 285.8 220-0

Economic Services - .

Transport and Communication 1,702 172.7 528.3 352.8

10.2

'.'.'iu-r Supr. L y ,  Electricity and Gas 6 2 1.5 15.2 .

Ir.dustrv Assistance and Development 1, 219 1 J b .  U 3 27.9

324 .9

Lacour and Employment . 1,084 88.4 261.6 232 .  1

Cthor Ecc-r.crnic Services 161 17.9 43.2 4 1.6

General Public Services -  Legislative Services 477 26.7 '  115.0 86.7

L s x ,  Greer and Public Safety 520 55.7 135.3 110.8

Foreign Affairs and Overseas Aid 1,301 58.0 24 1. 1 24 3 -9

General and Scientific Research (nec) 535 38.5 163.3 142.9

A d m i n i strative Services 2,484 250.1 678.9 555.0

Act a 1 located to Function - '

Payments to or for the States, the Northern Territory  and Local Government Authorities (ncc) 14,328 1,917.5 4,283.8 3,827.9

Public Dccz Interest 7,514 653.9 1,981.3 1,613.8

Allowances for Prospective Wage and Salary Increases  .-.or.-Defence) 125 - Ã¢ÂÂ¢  - -

Total Outlays 74,764 7, 178.5 19,676.9 17,140.8

HKCti IPTS

Income Tax - Individuals - Gross PAYE 31,740 2,655.7 7,971.1 6,845.6

Ã¢ÂÂ   l-s; 1  ChUj 2,550DR 499.9 DR 1,031.9DR 995.9DR

- liei. PAY!Â·: ' 29,190 2,155.7 6,939.1 5,849.7

- Ollier 6,800 68.9 274.4 315.3

- Prescribed Payments 750 64.6 , 180.0 125.4

- Companies 7,025 19.0 1,260.4 1,116.9

- Withholding Tax - Dividends/Mining 250 6.0 40.6 44 .4

.  - Interest ' 450 32.9 111.1 82.5

- Fringe Benefits Tax 325 - ‘ - -

Sjiv.5 7 3 :< 6,434 523 .  1 1,459.5 1,311.6

-xcise Du tv - Crude Oil and LPC 1,316 161.9 263.0 1,367.9

- Other 8,210 648.4 1,857.6 1,062.0

Customs Du tv - Imports 3,276 281.4 879.1 849.9

- Coal Exports 60 4 .1 12.4 15.3

sank Accounts Debits Tax 260 16.9 52.4 49.3

ACT Taxes and Charges 173 12.7 36.0 29.1

ether Taxes, Fees and Fines 366 16.5 51.6 65.8

remiss ions - 0 . 1DR

Total Taxation Revenue 64,885 4,012.1 13,417.2 12,285.0

interest, Rent and Dividends . 6,373 4 1.6 2,076.1 1,561.1

hot Receipts from Government  Ent e r p r i s e  Transactions

Total Receipts

2 2 .0DR 0 . 1DR 2. 1DR

71,261 . 4,051.7 15,493.2 13,843.9

'  DEFICIT .  3,503 3,126.9 4,183.6 3,296.9

coniinucd over

ÃÂ -V

)Â· lN A N C lN G  "J'liAW SACTlOHS

D o m e s t i c  F i n a n c i n g

Treasury Bonds - Official - Non-Officja 1 - Less Discount s

Sub-total

Treasury 1iiduxed Bonds - o ffi c ia l  - Non-Of ficia I - Loss Discounts

Sub-total

Treasury Notes .

- Official. - Non-Official

Sub-total

A u s t r a l i a n  Savings Bonds

O t h e r  B o r r o w i n g s  from Deserve Bank

Use of Casli Balances

O t h e r  Loans ami Financing Transactions

ÃÂÂ·ÃÂ a l I'omes tic F i n a n c i n g

i  'versons F i n a n c i n g

_____________________________Total Financing T r a n s actions

IUJDGKT  KST J.MATK

MONTH OF

SEPTEMBER 3 MO N T H S  TO

30.9.86

3 MONTHS TO

30.9.85 Ã¢ÂÂ

) ) >

888.SDR  658.2  16 . 7DR

299.0  82.0DR  29. 7DR

385.3DR  1,085.0  ? 7 .nnp

) 247.0DR 187.3 '  666.7

) ) )

0 . 2DR 75.3 ’

7. SDR

106.6  8 . 6DR

0 . 2DR 67.8 97.9

) )

4 7 2 . 1DR  1,238.8 950.1  1,322.7

1,259.4  1,257.8

) 766.7 2,272.8 2,517.3

) 45.2DR 112.SDR 543.SDR

1 3,503 - - -

) 2,940.3 2,497.9 340.2

) 370.6DR 2 1 2 . 9DR 313.7

') 3,044.0 4,700.4 Ã¢ÂÂ  3,392.4

i 82.9 5 1 6 . 8DR 9 5 .5DR

3,503 3.126.9 4.183.6 i .q

OUTSTANDING SlluDT TFIIM nKIIT AND GASH liAL.ANCl:tS

S MILLION

Ollier Borrowings from'Reserve Bank  Treasury Notes Cash Balances wi t h  Deserve Bank - Net Public Account

- Net Other Accounts

NIL

9,126.3

1,307.6CR  1,090.0

PETER WALSH

Finance Minister for Finance

F O O T N O T E :

The format of the Statement of Financial Transactions differs from that appearing in the 1986-87  Budget Pa p e r s  in the following respects:

.  in the 1986-87 Budget Papers, the functions 'Housing' and 'Urban and Regional Development (NEC)

and E n v i ronment' have been combined under a new functional heading entitled 'Housing and  C o m m u n i t y  Amenities n e c '; in addition, the function 'Water S u p p l y ,  Ele c t r i c i t y  and G a s '  has  been a b s o r b e d  in 'Other Economic Services';

.  in the 1986-87 Budget P a p e r s ,  'Excise d u t y - o t h e r '  has been disaggregated into 'Excise

d u t y - P e t r o l e u m  Products' and 'Excise d u t y - o t h e r '; the category 'Interest, Rent and Dividends'  has been d i s a g gregated into 'I n t e r e s t '  and 'Rent, Dividends and Royalties'. >

iwÂ·  : . .  'Â· Ã¢ÂÂ   '  -  Ã¢ÂÂ   . . . . . .  . . .  .

A m e n d m e n t s  to the format of the Statement of Financial Transactions require the ap p r o v a l  of  bo t h  Ho u s e s  of Parliament a n d , accordingly, the CFT will continue to be prepared in its

e x i s t i n g  '  format until such approval is o b t a i n e d .

ÃÂ . ÃÂ . KEATING

S'Â·'Â· ÃÂ¹ÃÂ¯;  to vy to the Department of  22 O c t o b e r  1986

