❓ A parliamentary question regarding discrepancies in reported cash deficits in Western Australia's budget papers, specifically questioning the Treasurer's acknowledgement of these deficits in budget speeches. The Treasurer's response clarifies the accounting standards used and defends the government's financial reporting practices.
AnsweredQoN 1052Legislative Council
QuestionView source ↗
I refer the Treasurer to the general government cash flow statement on page 174 of budget paper No 3. (1) Can the Treasurer confirm that the statement shows the Government incurring real accounting cash deficits of $136 million in 2001-02, $109 million in 2002-03 and a forecast cash deficit of $209 million for the coming year? (2) Can the Treasurer explain why he has failed to clearly acknowledge the cash deficit results in three consecutive budget speeches? Hon NICK GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(1) Can the Treasurer confirm that the statement shows the Government incurring real accounting cash deficits of $136 million in 2001-02, $109 million in 2002-03 and a forecast cash deficit of $209 million for the coming year? (2) Can the Treasurer explain why he has failed to clearly acknowledge the cash deficit results in three consecutive budget speeches? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(2) Can the Treasurer explain why he has failed to clearly acknowledge the cash deficit results in three consecutive budget speeches? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(1) Can the Treasurer confirm that the statement shows the Government incurring real accounting cash deficits of $136 million in 2001-02, $109 million in 2002-03 and a forecast cash deficit of $209 million for the coming year? (2) Can the Treasurer explain why he has failed to clearly acknowledge the cash deficit results in three consecutive budget speeches? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(2) Can the Treasurer explain why he has failed to clearly acknowledge the cash deficit results in three consecutive budget speeches? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(1) An accounting standards-based cash flow is not presented in the budget papers. The budget projections are prepared on an Australian Bureau of Statistics government finance statistics basis, consistent with the uniform presentation framework agreed by all jurisdictions. The GFS cash surplus-deficit estimates are the figures to which the member should refer. The GFS surplus-deficit result in 2001-02 was a deficit of $31 million. In 2002-03, a $35 million GFS cash deficit is estimated and in 2003-04 the budget forecast is for a $152 million GFS cash deficit. (2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
(2) The Government has a comprehensive set of financial targets, which have remained unchanged since it was elected. These targets are a mix of accrual and cash measures, which have been accepted by the international credit rating agencies as being appropriate and adequate for their purposes in monitoring the State’s financial performance. The GFS cash surplus-deficit is not a specifically targeted financial aggregate. However, actual results and forecasts of this aggregate have been clearly identified and discussed in budget paper No 3 in each of the budget papers over the past three years. Furthermore, the cash surplus-deficit contributes to movements in net debt, which have been discussed in previous budget papers, including the budget speech, and is a closely monitored target measure for the Government.
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