Page 3352 - Week 12 - Tuesday, 17 September 1991
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responsible approach. This has not been an easy commitment to deliver. However, it has been met in a realistic and socially just manner. We have bridged the $17m gap on the recurrent budget that remained in our budget strategy statement. We have produced a balanced budget without compromising priority services to the community.
Mr Speaker, let me remind you of the elements of our strategy. First, we have concentrated on public sector efficiency. We have focused on achieving real reductions in the costs of administration and improving returns from our business enterprises so as to protect the community, as far as possible, from reductions in the level of service delivery.
Second, we are not borrowing any new money for budget dependent activities in 1991-92. This will greatly reduce our debt servicing commitments in future years. Each dollar borrowed adds around 19c per annum to future recurrent budgets for the next 15 years. Third, we have limited, as far as possible, any increases in taxation. We have been particularly conscious of the need to protect the private sector from the effects of further taxation measures. This strategy has clearly worked.
Total expenditure in 1991-92 will be $1,294m. Recurrent expenditure will be $1,069m, and capital expenditure $225m. As part of our financial management strategy, we have set up a trust account to accumulate provisions from which to fund our future superannuation liabilities. The fund will stand at $75m at the end of 1991-92.
A different perspective is provided by looking at the broader public sector transactions as classified by the Australian Bureau of Statistics. On that basis, the shortfall between total ACT public sector outlays and revenues and grants received was $88m in 1990-91 and is estimated at $38m in 1991-92. This is an improvement of close to 60 per cent.
Using Bureau of Statistics classifications again, the total public sector net financing requirement has been reduced by one-third to $72m. This figure includes repayments of $35m in advances and $5m in domestic borrowings. This refutes predictions which received much publicity a few months ago, that the ACT net financing requirement would increase to over $200m this year. Further details of the ABS classifications are included in Budget Paper No. 4.
Public Sector Efficiency
The key element in my Government's approach to expenditure reduction has been a steadfast commitment to reducing the cost of administration while protecting government services to the community. In response to the community's call for a leaner bureaucracy, we have tackled unnecessary duplication, we have ensured that efficient practices are introduced, and we are eliminating waste.
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