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Legislative Assembly for the ACT: 1997 Week 8 Hansard (28 August) . . Page.. 2702 ..

APPENDIX 5: Incorporated in Hansard on 28 August 1997 at page 2631

JUNE CONSOLIDATED FINANCIAL MANAGEMENT REPORT

TABLING STATEMENT

Mr Speaker, the report for the month and year ended 30 June 1997 provides a preliminary assessment of the Government's financial performance for the 1996-97 financial year and shows that the Australian Capital Territory Government has significantly improved on the financial position originally budgeted.

The preliminary operating loss for the Territory for 1996-97 is $134m, before abnormal and extraordinary items. This is $97m, or 42%, better than originally budgeted.

This significant improvement over 1996-97 is due to this Government's prudent management of both its own financial performance and the Territory economy, and fully justifies this Government's financial management reforms.

Mr Speaker, the preliminary 1996-97 consolidated Territory operating loss of $176m, is still $55m better than originally budgeted after the inclusion of some $42m of unbudgeted net abnormal and extraordinary expenses. These items are largely technical or non-cash in nature.

The Territory's cashflow statement shows a gain of $152m from operating activities over the year. This is $50m higher than originally budgeted and underpins the improved accrual operating result. These funds have largely been applied to works and other fixed asset acquisitions.

The general government sector has achieved a preliminary consolidated operating loss for 1996-97 of $195m against the Budget time estimate of $232m. This operating loss stems from better than expected revenues of $89m, offset by higher ordinary expenses of $32m, and $21m of net abnormal and extraordinary items.

The increase in expenses includes a number of technical items relating to accounting treatment and previous years' transactions. As a result, cash spending in 1996-97 did not exceed that provided in the Appropriation Act.

As forecast in the 1996-97 Budget, there was no net increase in general government sector borrowings over the financial year.

Taxation for the Territory is approximately $32m above Budget, largely as a result of increases in payroll tax and stamp duties on conveyances and shares, all indicators of economic activity.

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