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Vy VICTORIA 1989-90 Library: Departments of Premier & Cabinet Treasury & Finance Level 5, 1 Macarthur Street East Melbourne Victoria 3002 VICTORIA 1989-90 DX 210759 Ph: 03 9651 5660 Fax 03 9651 5659 Email: [email protected] gov.au STATE OF PROGRESS A diagrammatic presentation of progress in Victoria to coincide with the release of the 1989-90 State Budget /s NOT 4 X FOR vy LOAN 1il1 VICTORIA 1989-90 STATE OF PROGRESS AUGUST 1989 ytctosUa^ GROWING TOGETHER I k Victoria 1989-90 State of Progress Published by VGPO Melbourne Victoria Australia ©State of Victoria 1989 This book is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act. Address all inquiries to the Government Printer for the State of Victoria PO Box 203 North Melbourne 3051 Victoria Australia Published August 1989 Jean Gordon Government Printer Melbourne Contents : The Victorian Economy: A record of progress 5 The 1989-90 State Budget 21 Government Services: Progress for all Victorians 31 The Victorian Economy A record of progress HOW THE TRENDS HAVE REVERSED Victoria Rest of Australia 15.00. EXPORTS 10.00.. In the 10 years to 1982-83, Victoria lagged behind the nation - in business investment, economic growth, exports 5.00, and employment growth. 0.00 % 1972-73 to But since then Victoria has moved ahead. Data show 1982-83 State data 1982-83 to average annual rate of growth in per cent. for exports not 1988-89 available 15.00,. KHH 15.00 _ ^ A 15.00 BUSINESS INVESTMENT 10.00 10.00.. 10.00 EMPLOYMENT GROSS NON-FARM PRODUCT 5.00 .. 5.00 .. 5.00 .. 0.00 \wmm i ¿M 0.00 % % 1972-73 1982-83 to 1972-73 1982-83 to 1972-73 1982-83 to 1982-83 1988-89 1982-83 1988-89 1982-83 1988-89 CONTRIBUTIONS TO GROSS DOMESTIC PRODUCT fROWTH 1989—90 (Percentage Points) 1984-—85 Prices Private Consumption Private Investment Public Demand Stocks and Statistical Discrepancies Gross National Expenditure Net Exports Gross Domestic Produce VICTORIA AUSTRALIA DMB forecasts i RECORD ACTIVITY REACHED IN NON-DWELLING BUILDING The real value of work yet to be done decreased from 1972-73 with growth remaining flat or negative through to 1983-84. Since then this growth has been strong and reached record real levels in 1988-89. Non-dwelling building covers hotels, shops, offices and other business premises. $ million 1800 -I 1600 - 1400 - <D O •G D< 1200 00 00 1000 800 - !=J o -o 600 - </3 G o 400 - U 200 - 0 i i 1 1 1 r 1 T 1 i" 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 BUSINESS INVESTMENT Victoria as a share of Australia OFFICE DEVELOPMENT COMMENCEMENTS IN MELBOURNE The level of office commencements has increased about fivefold from the recession levels of the early 1980s. Current $ billion 1.6 T 1.4 -- 1.2 -- 1.0 -- 0.8 -- 0.6 -- 0.4 -- 0.2 -- 0 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 JOBS GROWTH In 1988-89 more jobs were created in Victoria than any other State. VIC 107,400 Jobs in Tasmania fell 2000 in 1988-89. WORKING DAYS LOST REMAIN RELATIVELY LOW In 1988 Victoria lost 214 days per 1000 employees, whilst in the rest of Australia the number was 290. E- C/5 O J on < feQ O £o ^¡¡lil^ 1982 1983 1984 1985 1986 1987 1988 YEAR HIGHER RETENTION RATES - ALL SCHOOLS YEARS 7 TO 12 Young people are staying longer at school and acquiring better skills to reach their full potential. 70 -r 60 -• 50 -• C5 O<D t-i 40 -- 30 -- 20 -• 10 -- 1987 1988 THE FAMILY BUDGET PLEDGE All Victorian families are benefitting from the Government's commitment to contain the overall cost of State household charges. In 1988 the Premier, as part of the election platform, made the following pledge to the people of Victoria: "For a typical Victorian family with two school children and a car. The payment to families of the Education Expense Allowance and the abolition of private Motor Registration fees, together with our com- mitment to hold down the cost of basic household budget items such as electricity, gas, MMBW water and sewerage rates, third party insurance, drivers' licences and transport fares, means that for the next four years the typical Victorian family will pay not a dollar more in total for these items than they pay today." The effect of this Pledge is to leave Victorian families with more money to spend on other household items. Base Year Yearl Year 2 Jun'88 Jun'89 Jun'90 SECV $507.72 $522.19 $548.33 GAS AND FUEL $342.55 $352.90 $370.55 BOARD OF WORKS $409.94 $434.16 $455.57 PUBLIC TRANSPORT $195.00 $195.00 $203.00 DRIVERS'LICENCE $19.00 $19.00 $19.00 TRANSPORT ACCIDENT $265.00 $257.00 $267.00 MOTOR REGISTRATION $49.40 $24.70 $0.00 SUB-TOTAL $1,788.61 $1,804.95 $1,863.45 less Education Expense Allowance $120.00 $200.00 $200.00 TOTAL $1,668.61 $1,604.95 $1,663.45 (benchmark) SAVINGS FROM PLEDGE $63.66 $5.16 Cost if all charges had risen with inflation $1,782.08 $1,913.95 SAVINGS COMPARED TO INFLATION $177.13 $250.50 FAMILY BUDGET PLEDGE Keeping charges down for four years The Pledge means that Victorians will not pay a dollar more for essential Government services in 1992 than in 1988. Total $ 2000 1500 1000 500 1988 1989 1990 Year to June A BIGGER INCREASE IN HOUSEHOLD INCOME Since 1981-82 Victoria has moved ahead of the rest of Australia in real household disposable income per person. Most recent figures show Victoria more than 10% above the level of the rest of Australia. «i 1—• »MI 2 «J S3 <4-1 •I-o» t/5 £ <LG> O Vh Pi 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 (est.) SIX YEARS STRAIGHT: VICTORIA'S UNEMPLOYMENT RATE LOWEST OF ANY STATE Seasonally adjusted for June 1989: 4.6% in Victoria 10 5 4 4 - 3 - I I 2 - I I 1 - I I I I WA VIC NSW QLD SA TAS APPROVED PROSPECTUSES AND STATEMENTS FOR CAPITAL Sincel983-84 the resurgence of the Victorian economy has been reflected in the rapid growth of companies seeking to raise capital for expansion. In 1988-89, some 301 prospectuses and statements were issued through the Corporate Affairs Office. 350 300 -- 250 -- 200 - 150 100 -- 50 -- 0 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 GOVERNMENT CHARGES PERFORMANCE Percentage Increase March 1982 to June 1989 Melbourne had the lowest increase in local and state government charges of all capital cities Melbourne Peräi Hobart Darwin Adelaide Brisbane Sydney Canb erra ABS figures only cover capital cities. Interstate comparisons generally approximate capital city variances. The 1989-90 State Budget BUDGET SUMMARY—1989-90 1989-90 1988-89 1989-90 Budget Est. % change on $m $m 1988-89 Consumption 6 921-5 7 416-9 7-2 Interest 1 277-1 1 396-4 9-3 Other Current Outlays 1 010-8 1 090-4 7-9 Gross Fixed Capital Expenditure 1 743-2 1 478-7 -15-2 Other Capital Outlays 27-5 -7-7 Commonwealth Grants for on-passing 1 223-2 1 276-2 4-3 TOTAL OUTLAYS 12 203-2 12 650-9 3-7 Taxes, Fees and Fines 4 798-9 5 246-5 9-3 Property Income 715-0 758-1 6-0 Other Revenue 40-5 44-3 9-4 Commonwealth Grants 4 465-1 4 598-2 3-0 Commonwealth Grants for on-passing 1 222-7 1 275-2 4-3 TOTAL REVENUE AND GRANTS RECEIVED 11 242-2 11 922-2 6-0 Commonwealth Net Advances -5-5 -77-7 Other Net Borrowing 832-0 615-7 -26-0 Change in Cash Balances and Other 134-6 190-7 TOTAL FINANCING TRANSACTIONS 961-1 728-7 -24-2 Note: Totals may not add due to rounding A BALANCED RANGE OF INITIATIVES $ million Social Justice and Social Development Intellectual Disability 10.0 Child Protection 2.0 Homeless Young People 1.9 Aboriginal Affairs 2.0 Long Term Unemployment 0.5 RegionalDevelopment : Hospitals 14.0 5.8 m - 7% Psychiatric Services and Other Health 4.0 Education Allowances 1.8 Economic Strategy: Schools Integration Program 2.0 $7.5 m - 9% Other Education, including VCE implementation and computers in primary schools 3.5 Women's Choice and Opportunity Plan 1.2 Additional Police and Other Initiatives 5.8 Other 14 Total: 49.7 Conservation Social Policies: State Conservation Strategy - core 2.95 Pollution control 1.78 $49.7 - 62% Nature Conservation 3.85 Waterways and Wetlands 3.27 Conservation: Salinity 2.00 $17.6 m - 22% Other 3.64 Total: 17.59 Regional Development and Agriculture Strategic Regional Firm Program 2.9 Development Committees and DITR Regional Operations 0.7 Regional Centres Conservation 1.0 Agricultural Development Programs 12 Total: SA Economic Strategy Medical Research Institutes 1.8 Strategic Research Fund 3.2 Training 2A Total: LS. $80.5 million THE BUDGET WILL RECEIVE AROUND $11 BILLION .. The pie charts show (on a national accounting basis) the split-up of revenue and outlays. FINANCING 6.4% PROPERTY INCOME AND OTHER REVENUES 7.1% COMMONWEALTH GRANTS 40.4% STATE TAXATION 46.1% A BALANCE OF COMMUNITY NEEDS MET THROUGH BUDGET OUTLAYS PUBLIC ORDER EDUCATION AND SAFETY 21.1% 6.5% HOUSING AND COMMUNITY AMENITIES 3.2% SOCIAL SECURITY AND WELFARE 5.3% TRANSPORT 12.2% FALLING STATE DEBT Debt expressed as a percentage of NFGDP 31 -r 30 29 % 28 -- 27 -• 26 $ $ $ 25 I —I- 1985 1986 1987 1988 1989 1990 (est.) Years at end June PUBLIC SECTOR BORROWINGS ON THE WAY DOWN Global Limit Borrowings by the State public sector have declined every year since 1982-83 in real terms.
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