Diesel, Petrol, World Oil PricesSeptember 27, 2000
Address to the International Federation of Stock Exchanges Gala DinnerOctober 3, 2000
1999-2000 Final Budget Outcome
In 1999-2000, the Commonwealth general government sector achieved an underlying cash
surplus of $12.7 billion and an accrual fiscal surplus of $13.5 billion. In
dollar terms, this is the largest budget surplus ever recorded by an Australian
Government. As a proportion of GDP, this is the largest surplus since 1971-72.
The fiscal surplus of $13.5 billion was $3.8 billion higher than estimated at
the 2000-01 Budget. Stronger than expected taxation revenue and lower expenses both
contributed to the higher than expected surplus in 1999-2000.
The surplus in 1999-2000 follows two previous underlying cash surpluses of
$1.2 billion in 1997-98 and $4.2 billion in 1998-99. The Government is
forecasting surpluses right across the forward estimates while economic growth continues.
These results are consistent with the Governments commitment to maintain the Budget
in surplus while Australias economic growth prospects remain sound.
The budget surplus recorded in 1999-2000 enabled the Government to reduce the level of
Commonwealth general government net debt by $17.5 billion. Net debt has fallen since
its peak of 20 per cent of GDP in 1995-96 to just 8 per cent of GDP at
30 June 2000. In dollar terms, the Coalition government has now repaid around
$43 billion of net debt since 1996-97.
The combination of sustained fiscal surpluses and the low level of net debt places
Australia in a much stronger fiscal position than most comparable OECD countries.
An electronic version of the 1999-2000 Final Budget Outcome document can be found at: www.budget.gov.au
29 September 2000