2001 – 02 Economic and Fiscal Outlook
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2001 – 02 ECONOMIC AND FISCAL OUTLOOK BUDGET PAPER NO. 3 PRESENTED TO THE LEGISLATIVE ASSEMBLY ON 13 SEPTEMBER 2001 2001–02 Economic and Fiscal Outlook © Government of Western Australia Excerpts from this publication may be reproduced, with appropriate acknowledgement, as permitted under the Copyright Act. For further information please contact: Department of Treasury and Finance 197 St George’s Terrace Perth WA 6000 Telephone:+61 8 9222 9222 Facsimile: +61 8 9222 9342 Website: http://budget.treasury.wa.gov.au Published September 2001 John A. Strijk, Government Printer ISSN 1442–2921 Printed on Australian Paper BUDGET 2001-02 ECONOMIC AND FISCAL OUTLOOK TABLE OF CONTENTS UNDER TREASURER’S CERTIFICATION ............................................................................................. i CHAPTER 1: ECONOMIC AND FISCAL OUTLOOK – SUMMARY OVERVIEW .................................................................................................................................................. 1 FINANCIAL PROJECTIONS ..................................................................................................................... 2 GENERAL GOVERNMENT..............................................................................................................................2 TOTAL PUBLIC SECTOR ................................................................................................................................3 POLICY MEASURES SUMMARY ............................................................................................................ 3 ECONOMIC OUTLOOK............................................................................................................................. 6 GOVERNMENT OBJECTIVES AND FINANCIAL TARGETS ............................................................ 7 EXPENDITURE REVIEW PROCESS ..................................................................................................... 14 BUDGET PRESENTATION...................................................................................................................... 15 CHAPTER 2: FISCAL STRATEGY AND FINANCIAL PROJECTIONS FISCAL STRATEGY ................................................................................................................................. 17 FINANCIAL PROJECTIONS ................................................................................................................... 20 GENERAL GOVERNMENT............................................................................................................................20 Summary.......................................................................................................................................... 20 Operating Statement........................................................................................................................ 21 Expenses...........................................................................................................................................................22 Revenue ............................................................................................................................................................26 New Taxation Measures............................................................................................................................27 Review of State Business Taxes.................................................................................................................32 Taxation Revenue Estimates.......................................................................................................................33 Other Own Source Revenue .......................................................................................................................37 Balance Sheet .................................................................................................................................. 43 Cash Flow Statement....................................................................................................................... 44 TOTAL PUBLIC SECTOR ..............................................................................................................................47 Summary.......................................................................................................................................... 47 Public Non-Financial Corporations................................................................................................ 47 Public Financial Corporations........................................................................................................ 48 CAPITAL INVESTMENT................................................................................................................................48 Summary.......................................................................................................................................... 48 2001-02 Capital Works ................................................................................................................... 49 NET DEBT ..................................................................................................................................................54 Total Public Sector.......................................................................................................................... 54 General Government ....................................................................................................................... 56 Public Non-Financial Corporations................................................................................................ 57 Public Financial Corporations........................................................................................................ 57 TRENDS IN PUBLIC SECTOR FINANCES........................................................................................... 57 INTRODUCTION...........................................................................................................................................57 OPERATING STATEMENT ............................................................................................................................58 General Government ....................................................................................................................... 58 Total Public Sector.......................................................................................................................... 61 THE BALANCE SHEET.................................................................................................................................62 Net Worth ........................................................................................................................................ 62 Net Debt........................................................................................................................................... 64 THE CASH FLOW STATEMENT ....................................................................................................................65 Cash Surplus ................................................................................................................................... 65 STATEMENT OF RISKS .......................................................................................................................... 66 ESTIMATING ASSUMPTIONS........................................................................................................................67 PARAMETER SENSITIVITY OF THE REVENUE ESTIMATES............................................................................67 EXPENSES...................................................................................................................................................70 CAPITAL WORKS........................................................................................................................................70 CONTINGENT LIABILITIES ..........................................................................................................................71 CHAPTER 3: DELIVERING OUR COMMITMENTS SUMMARY.................................................................................................................................................. 73 ELECTION AND OTHER MAJOR COMMITMENTS..........................................................................................74 Premier; Minister for Public Sector Management; Federal Affairs; Science; Citizenship and Multicultural Interests ..................................................................................... 75 Deputy Premier; Treasurer; Minister for Energy ........................................................................... 76 Minister for Agriculture; Forestry and Fisheries; The Mid-West, Wheatbelt and Great Southern .......................................................................................................................... 77 Minister for Housing and Works; Local Government and Regional Development; The Kimberley, Pilbara and Gascoyne...................................................................................... 79 Minister for Consumer and Employment Protection; Training....................................................... 81 Attorney General; Minister for Justice and Legal Affairs; Electoral Affairs; Peel and the South West............................................................................................................. 85 Minister for the Environment and Heritage ...................................................................................