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IS Joint Departmental Information Centre Level 5. 1 Macaithur St EAST MELBOURNE VIC 3002 Ph: 03 96515660 Fax: 03 96515659 email: [email protected] A XST"1 ' -•iZf : -Ü ' ^¡¿zz 'S » OsöHtiiiiHßeOte Annual Report 1999-2000 o o ^prosperous QrOnofigyglDfiSEnEBB u n financialSñd management DepartmentPiTreasurylandlliinance'Annual lî^gijifliinnïtftiiïiîi DepartmentlofiTreasury fiTïïïlfgiiTïïïïaa Statë!ofiVictoriâ>2000 i ijarf^TiriTi il ictetìiwìih ^RTW^gaOìDUIBOI <'l'M'lit--KlgGÎB(g3ii'iïr'i i St 1325Î1775 Published 0ctober#2000 AddressTenquiries QSSâlâi) CMacarthunStree t miimiîîiiaailiB 1@ÊBfiBî0<g®@SO GB© www.vicxjov.'au/treasury/treasury.html / General government financial liabilities 2000-01 Budget Estimate (per cent of Gross State Product) Source: 2000-01 Budget Paper No. 2. Ratings by Moody's 1999-00 2000-01 2001-02 2002-03 Tas SA Vic Vic Vic NSW WA Qld 1998 1998 1999 2000 2004 1998 1998 1998 0 200 400 600 800 1000 1200 1400 Restoring Victoria's triple-A rating A substantial Budget surplus Victoria's standing in the international credit markets was In the 2000-01 State Budget the Department forecast an restored in 1999-2000 when international ratings agency, operating surplus of $592 million and predicted budget Moody's, announced It was upgrading Victoria's credit rating to surpluses averaging $450 million over the forward estimates triple-A. It followed an earlier announcement from Standard and period. The substantial Budget surplus will ensure that the Poor's that It would maintain Victoria's triple-A rating. Victoria Is Government's target of an operating surplus of at least only the fourth jurisdiction to regain a lost triple-A credit rating $100 million per year is still achievable In the event of a from Moody's - the other three being Ontario (Canada), Western moderate economic downturn. Australia and Norway. ... a range of new initiatives were implemented in 1999-2000 and important foundations have been laid for the realisation of other long-term policy objectives f» f HBHHB ¥ 1 i Kls^B Vic. JOINT DEPT INFO. CENTRE ' our history 2 5 JAN 2GGÎ •Ì K i LEVEL 3, 1 IVIACARTHUR STREET E. MELBOURNE VIC. 3002 Stems Qdu^hi/ 17 1999-2000 performance financial statements 81 appendices The Department of Treasury and Finance can trace its origins to the earliest days of the settlement t f that became the State of Victoria"/The Treasury is one of Victoria's oldest institutions, predating the Parliament of Victoria by more than a decade. .- • „„„. -- .. r A branch of the Colonial Treasury was opened in Melbourne in 1839. The first Government representative sent to Port Phillip,"Captain William Lonsdale, was appointed sub-Treasurer in the following year. He hadasteff of three and managed an annual budget of £1,812 10s 8d. The Treasury played a vital part intrie establishment of the local economy, collecting revenue from land sales and customs duty.iLateryt became the principal agency responsible for the sale and safe storage of gold extracted from V|cToria|smines in the second-half of the nineteenth century. Today, the Department continues to playa crucial role in building the foundations for Victoria's • r future, by managing the State's finances and promoting economic growth for all Victorians. The year in review Our vision and mission Vision: a prosperous future for all Victorians. Following the State Election in October 1999, the Department expanded its vision statement to align it with the new Government's priorities. To fulfil this vision, the Department's energy and resources are directed at'providing policy advice to the Government that will ultimately Increase the living standards of all Victorians. Mission: to provide leadership in economic, financial and resource management. The Department's role is to ensure that the Government and the State of Victoria benefit from the highest standard of economic, financial and resource management. As a central Government agency, the Department plays an important role In advising the Government on how to achieve its policy outcomes through the distribution of resources within a framework of financial responsibility. Achievements The following highlights provide a snapshot of initiatives completed by the Department during 1999-2000 that contributed to Government outcomes of a substantial budget surplus, a transparent and accountable financial system, economic growth for the whole State, and value for money services. • A State Budget surplus of $592 million for 2000-01 31 • A world-first financial accountability framework • A mechanism to monitor Government spending - the Expenditure Review Committee • A public-private partnership policy to deliver better services to the Victorian community • A better approach to gambling regulation based on community consultation • Restoration of common law rights for seriously Injured workers • Year 2000 readiness of 99 per cent across the Victorian public sector • Implementation of Commonwealth tax changes while protecting the State's budget position • Successful completion of Victorian public transport franchising • A live webcast of the Treasurer's Budget Speech in Parliament - an Australian first The year in review continued Economic and financial report card Victoria's economic and financial position is strong and foundations have been laid for the State's long-term economic growth. The Department has made a major contribution to sustaining this position by providing sound economic and financial advice to the Government. Victorian net interstate migration (persons) Gross State Product (per cent change on previous year) 10 000 - 5 000 0 .1 6 - -5 000- 4 ... -10 000- 3 - -15 000 - 2 - -20 000 - 1 - -25 000 - -30 000 - Victoria is the place to be Strong economic growth to continue Victoria's annual population growth has trebled since 1994 and Following exceptionally strong growth in the late 1990s, Victorian is now above the national growth rate for the first time since the Gross State Product is expected to grow by at least 3 per cent early 1970s. People continue to move to Victoria, with a net per year until 2003-04. 5 350 people migrating from interstate in 1999. Victorian international non-gold Improved regional employment growth merchandise exports ($ billion) 5- o 1997-98 H 1998-99 • 1999-00 Victorian exports growing strongly Promoting growth across the whole State Victorian exports, which account for 12 per cent of GSP, grew In the year to August 2000, employment in country Victoria has strongly In 1999-2000. Growth occurred in all major markets grown by 4.7 per cent compared with 3.5 per cent in Melbourne and commodity groups. The volume of international (three-month average data). The regional unemployment rate merchandise exports rose 9.3 per cent in trend terms through averaged 7.3 per cent In the three months to August, compared the year ending June 2000 and the value of Victorian exports to with 5.6 per cent in metropolitan Melbourne. Asia grew by 30 per cent in the first half of 2000. The year in review continued Secretary's Report As an organisation, the Department of Treasury and Finance In assisting the Government with its first Budget, the Department also facilitated the implementation prides itself on agility and professional service. The financial of the Government's election commitments. The Department developed a financial strategy, year 1999-2000 provided the Department with an unsurpassed based on responsible financial management, which included a commitment to maintaining an opportunity to display these qualities. The election of the Bracks annual Budget surplus of at least $100 million. Government at the end of October 1999, following a two-month period of caretaker Government,1 resulted in a range of new Consulting the community initiatives. Many of these have already been fully implemented, The restoration of common law rights to seriously injured workers was a Government election while important foundations have been laid for the realisation of commitment. During the year the Department established a working party consisting of other long-term policy objectives. business, union, legal and insurance representatives to develop recommendations for reinstating common law to the Victorian Workers' Compensation scheme. Following a period Enhancing financial accountability of consultation, the recommendations of the Common Law Working Party were incorporated Maintaining a substantial operating surplus and a commitment to... in the Accident Compensation (Common Law and Benefits) Act 2000 that was passed in the open, transparent and accountable government are central to the Autumn Session of Parliament. Government's agenda. The Department developed and Another Government election commitment implemented by the Department was the creation of implemented a new financial accountability framework, involving a stronger regulatory environment for the gaming industry. A consultation process on responsible new financial practices and financial responsibility legislation gaming was completed by May 2000 and elicited over 200 written responses from industry, local The Audit (Amendment) Act 1999 and the Financial Management government, community groups and members of the public. In addition, the Gambling Legislation (Financial Responsibility) Act 2000 were passed in Spring 1999. (Responsible Gambling) Act 2000 was passed in May. Key elements of the legislation include: Another significant community consultation project that commenced In 1999-2000 was the • < quarterly Budget Sector financial reports and a half-yearly establishment