BUDGET STATEMENT 2009–10 STATEMENT BUDGET 2009 10 BUDGET STATEMENT BUDGET PAPER 3 BUDGET PAPER 3 PAPER BUDGET Presented by the Honourable Kevin Foley MP Deputy Premier and Treasurer of South Australia on the Occasion of the Budget for 2009–10 TABLE OF CONTENTS Chapter 1: Fiscal Strategy and Budget Priorities Overview ......................................................................................................................................... 1.1 Budget priorities.............................................................................................................................. 1.2 Fiscal strategy.................................................................................................................................. 1.3 Fiscal outlook .................................................................................................................................. 1.6 Attachment — Variations in the net operating balance and net lending estimates since the 2008-09 Budget and the 2008–09 Mid-Year Budget Review.......................................... 1.11 Chapter 2: Expenditure Overview ......................................................................................................................................... 2.1 Savings ............................................................................................................................................ 2.4 General government expenditure .................................................................................................... 2.5 Budget initiatives by portfolio and agency......................................................................................2.7 Premier and Cabinet.................................................................................................................. 2.7 Trade and Economic Development / Defence SA..................................................................... 2.9 Treasury and Finance ................................................................................................................ 2.11 Planning and Local Government............................................................................................... 2.11 Primary Industries and Resources............................................................................................. 2.12 Transport, Energy and Infrastructure ........................................................................................ 2.13 Justice........................................................................................................................................ 2.17 Health ........................................................................................................................................ 2.20 Education and Children’s Services ........................................................................................... 2.22 Tourism ..................................................................................................................................... 2.25 Environment and Conservation and the River Murray ............................................................. 2.26 Families and Communities........................................................................................................ 2.29 Further Education, Employment, Science and Technology ...................................................... 2.30 Key components of expenses .......................................................................................................... 2.33 Employee expenses ................................................................................................................... 2.33 Public sector employment ......................................................................................................... 2.33 Superannuation.......................................................................................................................... 2.35 Interest expenses ....................................................................................................................... 2.35 Grants ........................................................................................................................................ 2.36 Other operating (non-employee) expenses................................................................................ 2.36 Purchases of property, plant and equipment ............................................................................. 2.36 Expenses by function (ABS Government Purpose Classifications).......................................... 2.37 Expenditure by portfolio ........................................................................................................... 2.38 Expenditure decisions 2008-09 ................................................................................................. 2.40 Table of contents — continued Chapter 3: Revenue Overview ......................................................................................................................................... 3.1 Taxation measures........................................................................................................................... 3.1 Emergency services levy................................................................................................................. 3.3 Agency revenue measures............................................................................................................... 3.5 Fees and charges.............................................................................................................................. 3.5 General government sector revenue ................................................................................................ 3.7 Taxation........................................................................................................................................... 3.7 South Australia’s relative tax effort ................................................................................................ 3.15 Grant revenue .................................................................................................................................. 3.17 Sales of goods and services............................................................................................................. 3.20 Interest income ................................................................................................................................ 3.20 Dividend and income tax equivalent income .................................................................................. 3.21 Other revenue .................................................................................................................................. 3.21 Chapter 4: Intergovernmental Finances Overview ......................................................................................................................................... 4.1 Recent developments....................................................................................................................... 4.1 Commonwealth payments to the states ........................................................................................... 4.6 Local government finances ............................................................................................................. 4.11 Chapter 5: Managing the State’s Assets and Liabilities Overview ......................................................................................................................................... 5.1 General government sector financial position................................................................................. 5.1 Unfunded superannuation liability .................................................................................................. 5.7 Non-financial public sector financial position ................................................................................ 5.9 Management of assets and liabilities............................................................................................... 5.11 Chapter 6: Government Businesses Overview ......................................................................................................................................... 6.1 Public non-financial corporations: operating performance ............................................................. 6.2 Governance arrangements ............................................................................................................... 6.7 Balance sheet structure.................................................................................................................... 6.7 Competitive neutrality policy and principles .................................................................................. 6.8 Chapter 7: Risk Statement Overview ......................................................................................................................................... 7.1 Revenue risks .................................................................................................................................. 7.1 Expenditure risks............................................................................................................................. 7.6 Contingent liabilities ....................................................................................................................... 7.10 Table of contents — continued Chapter 8: South Australian Economy Overview 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