NO.072

2000-01 Final Budget Outcome

In 2000-01, the Commonwealth general government sector achieved an underlying

cash surplus of $5.6 billion and an accrual fiscal surplus of $5.9 billion.

This was the fourth consecutive underlying cash surplus recorded by the Government,

and a significantly stronger outcome than was budgeted.

The cash surplus outcome of $5.6 billion was about $3.4 billion higher than

estimated at the 2001-02 Budget, while the accrual outcome of $5.9 billion was

$0.5 billion higher than expected. These outcomes result mainly from stronger

than expected company taxation revenue and cash receipts, and lower than anticipated

expenses.

• Total cash receipts were about $1.7 billion higher than estimated at the

  2001-02 Budget. In cash terms, taxation revenue was around $1.4 billion higher

  than expected, principally from company tax. The additional strength in taxation

  receipts was largely due to a combination of higher than anticipated corporate

  profitability in 2000 and a timing effect through lower than expected deferrals

  of tax payments under the transitional PAYG arrangements. Accrual taxation

  revenue was around $0.5 billion above the corresponding estimate at the 2001-02

  Budget.

• Total cash payments were around $1.8 billion lower than estimated at the 2001-02

  Budget. This outcome reflects a combination of lower than anticipated expenditure

  on some personal benefit payments, higher than expected non-cash accrual expenses

  and the carryover of some cash payments from 2000-01 into 2001-02. Accrual expenditure

  (expenses and net capital investment) was in line with expectations.

The Budget surplus recorded in 2000-01 enabled the Government to reduce the

level of Commonwealth General Government net debt by $13.8 billion, $3.5 billion

more than was expected at the 2001-02 Budget. Net debt has fallen from a peak

of almost 20 per cent of GDP in 1995-96 to just 5.8 per cent of GDP at 30 June

2001. In dollar terms, the Coalition government has now repaid around $57 billion

of net debt since 1996-97.

An electronic version of the 2000-01 Final Budget Outcome document can be found

at: www.budget.gov.au

CANBERRA

26 September 2001