Queensland Treasury 18-K/A Annual report (foreign governments) (amended)

EXHIBIT (c)(vi)

2004-05 Mid-Year Fiscal and Economic Review

QUEENSLAND’S 2004-05

MID YEAR FISCAL AND ECONOMIC REVIEW

The Mid Year Fiscal and Economic Review is required under the Government’s Charter of Social and Fiscal Responsibility and the Australian Loan Council’s Uniform Presentation Framework and provides an update on the fiscal and economic outlook for Queensland, based on assessments prepared by Queensland Treasury.

ECONOMIC OUTLOOK

The current outlook for the economy in 2004-05 is in line with the 4¼% growth forecast at the time of the State Budget in June 2004. However, the composition of growth is anticipated to change slightly.

Domestic demand is expected to be stronger than forecast. Growth in private consumption is likely to be higher than expected in the State Budget, with interest rates remaining more supportive to growth for longer than initially expected and the impact of higher household wealth flowing through to consumer spending for a greater length of time than previously anticipated. Stronger consumption is also expected to be driven by a higher level of housing investment in 2004-05 than forecast in the Budget, reflecting a more supportive interest rate environment than expected at the time of the Budget and a backlog of construction work yet to be done.

Net exports are expected to detract slightly more from overall growth than forecast at the time of the State Budget. This primarily reflects stronger consumer spending and a higher $A exchange rate than anticipated at the time of the State Budget, which together should lead to growth in the volume of imports slightly above that originally forecast. At the same time, the appreciation in the $A over the last six months should also place downward pressure on the price of imported goods and services, leading to a marginally lower inflation forecast of 2¼% in 2004-05, compared with the 2½% anticipated at the time of the State Budget.

Stronger than anticipated domestic activity, particularly in labour-intensive industries, is expected to raise employment by 4% in 2004-05, compared with a forecast 2¼% in the State Budget. As a result, the year-average unemployment rate is forecast to fall to 5½% in 2004-05, compared with a Budget forecast of 6¼%.

A revised Economic Parameters Table incorporating these revisions is provided as Table 1 of Attachment A.

FISCAL OUTLOOK

GENERAL GOVERNMENT SECTOR

The General Government sector is expecting to record higher than forecast operating and cash surpluses for 2004-05 and the outyears.

- 2 -

A revised General Government operating surplus of $1.096 billion, up $450 million from the Budget estimate, is expected for 2004-05. The surplus reduces in 2005-06 largely due to the abolition of debits tax from 1 July 2005 at a cost of some $190 million per annum and an anticipated moderation in property market activity flowing through to transfer duty revenue. The upward revisions to forecast operating surpluses reflects revenue growth across a range of items. These higher operating surpluses will provide further capacity for both the future expansion and upgrading of infrastructure and the management of external impacts on the operating position.

At Budget time, transfer duty receipts were expected to fall markedly in line with an anticipated slow down in the property market. The reduction in receipts, while evident, has not been as large as originally expected. Land value increases in 2003-04 have also led to higher than forecast land tax receipts.

In addition, payroll tax estimates have been revised upwards in line with the strong employment growth being experienced.

Australian Government GST payments to Queensland have been revised upwards since the Budget to reflect updated forecasts in the Mid Year Economic and Fiscal Outlook (MYEFO). The forward estimates now also incorporate expected funding to Queensland for AusLink projects, which also contributes towards higher than forecast General Government sector capital expenditure.

Despite the increase in the $A exchange rate, royalty revenue has been revised upwards to reflect higher commodity prices, in particular coal, and increased export volumes.

The 2004-05 surplus is based on a 7.5% investment return on long-term financial assets held to meet future liabilities such as superannuation. While equity markets have performed well year-to-date, the estimate of investment returns remains unchanged given the high levels of investment market volatility in recent years.

The increase in General Government expenses over the 2004-05 Budget is primarily due to the following:

• expenditure offsets to increases in specific purpose payments and other revenues;

• actuarial revisions to superannuation, long service leave and insurance expense estimates;

• the final timing of expenses between 2003-04 and 2004-05; and

• the expensing of Tugun Bypass construction costs for works being undertaken in New South Wales.

The forward estimates also incorporate increased Community Service Obligation payments for uniform electricity prices for franchise customers arising from additional capital expenditure by energy retailers. This increased capital expenditure is being undertaken as part of the implementation of the recommendations of the Electricity Distribution and Service Delivery review.

- 3 -

A cash surplus of $1.509 billion is expected in 2004-05, $450 million greater than forecast at Budget time. This again reflects improvements across a range of revenue items, offset in part by higher than forecast capital spending.

The State’s net worth is expected to increase to $81.731 billion in 2004-05. This is $9.267 billion higher than the forecast of $72.464 billion at Budget time. The increase in net worth reflects the flow through of final 2003-04 balance sheet outcomes particularly in relation to the revaluation of land and other fixed assets and the improvement in the State’s 2003-04 actual and 2004-05 estimated operating position.

PUBLIC NON-FINANCIAL CORPORATIONS SECTOR

The Public Non-financial Corporations (PNFC) sector is projected to have a GFS net operating surplus of $148 million in 2004-05, an improvement of $111 million over the Budget estimate. This improvement represents a stronger than expected trading performance across a range of Government-owned corporations.

Capital spending in the PNFC sector has been revised upwards markedly in the outyears, primarily reflecting implementation of the Government’s commitment to a significant upgrade of the electricity transmission and distribution network.

LOAN COUNCIL ALLOCATION

Under the Australian Loan Council Financial Agreement, each jurisdiction provides a Loan Council Nomination, comprising the State Government cash surplus/deficit and additional items which contribute to net borrowing, giving an estimate of the Public Sector’s call on financial markets. The nominations are also considered by the Loan Council as to whether they are consistent with macroeconomic policy objectives.

The revised 2004-05 LCA surplus is $205 million (Budget-time deficit of $620 million), reflecting improved operating cash flows and lower borrowings by local councils.

ATTACHMENT A

Table 1

Major Queensland Economic Parameters¹

			Budget		MYFER
	Outcome		Forecast		Forecast
	2003-04		2004-05		2004-05
Gross state product 2		3.9		41/4		41/4
Employment		3.3		21/4		4
Unemployment rate		6.2		61/4		51/2
Inflation		2.9		21/2		21/4
Average earnings 3		3.1		4		4
Population		2.2		21/4		21/4

Notes:
1.	Figures not quoted as a fraction are an actual outcome.
2.	Chain volume measure, 2002-03 reference year.
3.	Average earnings are on a State Accounts basis.

Table 2

Queensland’s Revised 2004-05 Loan Council Allocation

	2004-05			2004-05
	Budget			Revised
	LCA			MYR
	Estimate			Estimate
	$ million			$ million
General Government sector cash deficit/(surplus)1		(1,059	)		(1,509	)
PNFC sector cash deficit/(surplus)1		1,541			1,313
Non-financial Public sector cash deficit/(surplus)1		482			(196	)
Net cash flows from investments in financial assets for policy purposes		—			—
Memorandum items2		138			(9	)
Loan Council Allocation		620			(205	)

1.	Figures in brackets represent surpluses.
2.	Primarily represents movement in Local Government borrowings.

Table D.1
General Government Sector Operating Statement ⁽¹⁾

		2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
								Revised			Revised			Revised			Revised
		Actual			Budget			Budget			Projection			Projection			Projection
		$ million			$ million			$ million			$ million			$ million			$ million
	GFS Revenue
	Taxation revenue		6,676			6,338			6,635			6,590			6,992			7,382
	Current grants and subsidies		10,992			11,803			12,130			12,512			12,980			13,659
	Capital grants		553			468			531			494			635			796
	Sales of goods and services		2,105			2,142			2,167			2,206			2,287			2,358
	Interest income		2,723			1,215			1,274			1,331			1,416			1,499
	Other		2,165			2,043			2,227			2,298			2,557			2,433
	Total Revenue		25,214			24,009			24,964			25,431			26,867			28,127
Less	GFS Expenses
	Gross operating expenses
	Employee expenses		10,004			10,666			10,886			11,444			12,091			12,732
	Other operating expenses		4,245			4,406			4,541			4,624			5,226			5,508
	Depreciation		1,460			1,585			1,598			1,670			1,717			1,762
	Superannuation interest expense		750			757			747			806			850			892
	Other interest expense		211			202			205			220			270			291
	Current transfers		4,500			5,006			5,030			5,239			5,303			5,682
	Capital transfers		704			741			861			639			616			619
	Total Expenses		21,874			23,363			23,868			24,642			26,073			27,486
Equals	GFS net operating balance		3,340			646			1,096			789			794			641
Less	Net acquisition of non-financial assets
	Purchases of non-financial assets		2,415			2,718			2,845			2,802			2,739			2,866
	Sales of non-financial assets		(356	)		(284	)		(330	)		(250	)		(234	)		(215	)
	Less Depreciation		1,460			1,585			1,598			1,670			1,717			1,762
	Plus Change in inventories		(13	)		37			61			2			(19	)		(14	)
	Plus Other movements in non-financial assets		(83	)		3			4			1			2			1
	Equals Total net acquisition of non-financial assets		503			889			982			885			771			876
Equals	GFS Net lending / (borrowing) (Fiscal Balance)		2,838			(243	)		114			(96	)		23			(235	)

Note:
1.	Numbers may not add due to rounding.

Table D.2
Public Non-financial Corporations Sector Operating Statement ⁽¹⁾

		2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
								Revised			Revised			Revised			Revised
		Actual			Budget			Budget			Projection			Projection			Projection
		$ million			$ million			$ million			$ million			$ million			$ million
	GFS Revenue
	Current grants and subsidies		1,000			1,082			1,055			1,159			961			1,102
	Capital grants		55			49			12			6			8			8
	Sales of goods and services		6,625			6,700			7,020			7,629			8,326			8,430
	Interest income		101			72			82			74			78			82
	Other		350			339			391			329			368			388
	Total Revenue		8,130			8,242			8,560			9,197			9,741			10,010
Less	GFS Expenses
	Gross operating expenses
	Employee expenses		1,517			1,634			1,664			1,700			1,753			1,803
	Other operating expenses		3,457			3,477			3,626			3,960			4,005			4,209
	Depreciation		1,216			1,280			1,269			1,485			1,586			1,722
	Other interest expense		742			811			758			820			852			958
	Other property expenses		1,052			868			940			957			1,287			1,103
	Current transfers		198			135			155			78			—			—
	Capital transfers		16			—			—			—			—			—
	Total Expenses		8,197			8,205			8,412			9,000			9,483			9,795
Equals	GFS net operating balance		(67	)		37			148			197			258			215
Less	Net acquisition of non-financial assets
	Purchases of non-financial assets		1,804			3,123			3,084			3,390			3,365			3,175
	Sales of non-financial assets		(384	)		(51	)		(103	)		(42	)		(54	)		(54	)
	Less Depreciation		1,216			1,280			1,269			1,485			1,586			1,722
	Plus Change in inventories		(15	)		(3	)		10			(25	)		7			15
	Plus Other movements in non-financial assets		(7	)		25			25			36			39			42
	Equals Total net acquisition of non-financial assets		182			1,814			1,747			1,874			1,771			1,456
Equals	GFS Net lending / (borrowing) (Fiscal Balance)		(249	)		(1,777	)		(1,599	)		(1,677	)		(1,513	)		(1,241	)

Note:
1.	Numbers may not add due to rounding.

Table D.3
Non-financial Public Sector Operating Statement ⁽¹⁾

		2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
								Revised			Revised			Revised			Revised
		Actual			Budget			Budget			Projection			Projection			Projection
		$ million			$ million			$ million			$ million			$ million			$ million
	GFS Revenue
	Taxation revenue		6,358			5,960			6,265			6,204			6,588			6,966
	Current grants and subsidies		10,817			11,710			12,001			12,403			12,870			13,560
	Capital grants		592			517			541			497			638			799
	Sales of goods and services		8,622			8,665			9,030			9,680			10,458			10,635
	Interest income		2,821			1,273			1,343			1,393			1,481			1,568
	Other		1,470			1,514			1,675			1,666			1,632			1,712
	Total Revenue		30,681			29,639			30,855			31,843			33,667			35,240
Less	GFS Expenses
	Gross operating expenses
	Employee expenses		11,520			12,250			12,499			13,094			13,793			14,485
	Other operating expenses		7,591			7,361			7,693			8,087			8,713			9,184
	Depreciation		2,676			2,864			2,867			3,155			3,303			3,483
	Superannuation interest expense		750			757			747			806			850			892
	Other interest expense		952			1,000			951			1,027			1,109			1,236
	Current transfers		3,216			3,983			3,994			4,049			4,231			4,485
	Capital transfers		703			740			860			639			616			619
	Total Expenses		27,407			28,955			29,611			30,857			32,615			34,384
Equals	GFS net operating balance		3,274			684			1,244			986			1,052			856
Less	Net acquisition of non-financial assets
	Purchases of non-financial assets		4,219			5,841			5,929			6,192			6,103			6,041
	Sales of non-financial assets		(740	)		(335	)		(433	)		(292	)		(288	)		(269	)
	Less Depreciation		2,676			2,864			2,867			3,155			3,303			3,484
	Plus Change in inventories		(28	)		34			71			(23	)		(12	)		1
	Plus Other movements in non-financial assets		(90	)		28			29			37			41			43
	Equals Total net acquisition of non-financial assets		685			2,704			2,729			2,759			2,541			2,332
Equals	GFS Net lending / (borrowing) (Fiscal Balance)		2,589			(2,020	)		(1,485	)		(1,773	)		(1,489	)		(1,476	)

Note:
1.	Numbers may not add due to rounding.

Table D.4
General Government Sector Balance Sheet ⁽¹⁾

	2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
							Revised			Revised			Revised			Revised
	Actual			Budget			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million
Assets
Financial Assets
Cash and deposits		1,729			1,081			1,493			1,743			1,614			1,761
Advances paid		173			202			197			209			220			231
Investments, loans and placements		16,157			17,303			17,753			18,903			20,063			21,233
Other non-equity assets		4,318			4,100			4,363			4,514			4,929			4,805
Equity		14,633			14,131			15,892			17,688			19,015			19,883
Total Financial Assets		37,010			36,817			39,698			43,057			45,841			47,913
Non-Financial Assets		61,981			58,479			64,457			66,921			69,333			71,868
Total Assets		98,991			95,296			104,155			109,978			115,174			119,781
Liabilities
Advances received (2)		—			—			501			501			502			503
Borrowing		3,208			3,571			2,752			3,496			4,391			4,864
Superannuation liability		11,930			13,607			13,161			14,275			15,413			16,574
Other employee entitlements and provisions		3,590			3,540			3,623			3,676			3,731			3,798
Other non-equity liabilities		2,540			2,114			2,387			2,408			2,409			2,415
Total Liabilities		21,268			22,832			22,424			24,356			26,446			28,154
Net Worth		77,723			72,464			81,731			85,622			88,728			91,627
Net Financial Worth		15,742			13,985			17,274			18,701			19,395			19,759
Net Debt		(14,851	)		(15,015	)		(16,190	)		(16,858	)		(17,004	)		(17,858	)

Note:
1.	Numbers may not add due to rounding.
2.	From 2004-05 the Australian Bureau of Statisitcs (ABS) has requested that Commonwealth debt be classified as Advances received, rather than Borrowing.

Table D.5
Public Non-financial Corporations Sector Balance Sheet ⁽¹⁾

	2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
							Revised			Revised			Revised			Revised
	Actual			Budget			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million
Assets
Financial Assets
Cash and deposits		1,025			771			871			887			1,198			1,167
Investments, loans and placements		997			938			1,019			1,037			1,057			1,079
Other non-equity assets		1,909			1,718			1,972			2,018			2,001			1,954
Equity		60			60			61			66			73			85
Total Financial Assets		3,992			3,487			3,923			4,008			4,329			4,285
Non-Financial Assets		27,160			29,826			29,781			32,976			35,206			37,037
Total Assets		31,152			33,313			33,704			36,984			39,535			41,322
Liabilities
Deposits held		84			77			63			63			64			64
Borrowing		12,066			14,664			13,099			14,218			15,017			15,889
Other employee entitlements and provisions		3,954			3,834			4,056			4,174			4,546			4,389
Other non-equity liabilities		1,314			1,286			1,493			1,740			1,788			1,991
Total Liabilities		17,419			19,861			18,711			20,195			21,415			22,333
Net Worth		13,733			13,452			14,993			16,789			18,120			18,989
Net Financial Worth		(13,427	)		(16,374	)		(14,788	)		(16,187	)		(17,086	)		(18,048	)
Net Debt		10,128			13,032			11,272			12,357			12,826			13,707

Note:
1.	Numbers may not add due to rounding.

Table D.6
Non-financial Public Sector Balance Sheet ⁽¹⁾

	2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
							Revised			Revised			Revised			Revised
	Actual			Budget			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million
Assets
Financial Assets
Cash and deposits		2,754			1,852			2,365			2,630			2,812			2,928
Advances paid		157			186			181			194			205			218
Investments, loans and placements		17,145			18,184			18,762			19,930			21,111			22,303
Other non-equity assets		2,695			2,254			2,659			2,640			2,616			2,586
Equity		993			772			994			998			1,000			1,011
Total Financial Assets		23,745			23,248			24,961			26,392			27,744			29,046
Non-Financial Assets		89,107			88,271			94,204			99,864			104,505			108,871
Total Assets		112,852			111,519			119,165			126,256			132,249			137,917
Liabilities
Deposits held		85			86			63			63			65			65
Advances received (2)		—			—			501			501			502			502
Borrowing		15,248			18,152			15,826			17,690			19,382			20,732
Superannuation liability		11,930			13,607			13,161			14,275			15,413			16,574
Other employee entitlements and provisions		4,180			4,172			4,249			4,339			4,479			4,663
Other non-equity liabilities		3,686			3,038			3,634			3,766			3,680			3,755
Total Liabilities		35,129			39,055			37,434			40,634			43,521			46,291
Net Worth		77,723			72,464			81,731			85,622			88,728			91,627
Net Financial Worth		(11,384	)		(15,807	)		(12,473	)		(14,242	)		(15,777	)		(17,245	)
Net Debt		(4,723	)		(1,984	)		(4,918	)		(4,500	)		(4,179	)		(4,150	)

Note:
1.	Numbers may not add due to rounding.
2.	From 2004-05 the Australian Bureau of Statisitcs (ABS) has requested that Commonwealth debt be classified as Advances received, rather than Borrowing.

Table D.7
General Government Sector Cash Flow Statement ⁽¹⁾

	2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
							Revised			Revised			Revised			Revised
	Actual			Budget			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million
Receipts from operating activities
Taxes received		6,635			6,337			6,634			6,589			6,991			7,381
Grants and subsidies received		11,535			12,273			12,747			13,012			13,617			14,442
Sales of goods and services		2,448			2,384			2,405			2,456			2,542			2,611
Other receipts		5,104			3,652			3,830			3,938			3,991			4,466
Total		25,721			24,646			25,616			25,995			27,141			28,900
Payments for operating activities
Payments for goods and services		(14,305	)		(14,691	)		(14,931	)		(15,931	)		(17,175	)		(18,097	)
Grants and subsidies		(4,954	)		(5,603	)		(5,735	)		(5,753	)		(5,793	)		(6,174	)
Interest		(209	)		(202	)		(207	)		(222	)		(273	)		(293	)
Other payments		(704	)		(654	)		(715	)		(664	)		(666	)		(646	)
Total		(20,172	)		(21,150	)		(21,588	)		(22,570	)		(23,907	)		(25,210	)
Net cash inflows from operating activities		5,549			3,496			4,028			3,425			3,234			3,690
Payments for investments in non-financial assets
Purchases of non-financial assets		(2,415	)		(2,718	)		(2,845	)		(2,802	)		(2,739	)		(2,866	)
Sales of non-financial assets		356			284			330			250			234			215
Total		(2,059	)		(2,434	)		(2,515	)		(2,552	)		(2,505	)		(2,651	)
Payments for investments in financial assets for policy purposes		(632	)		(105	)		(146	)		(206	)		(578	)		(186	)
Payments for investments in financial assets for liquidity purposes		(2,398	)		(1,492	)		(1,561	)		(1,147	)		(1,163	)		(1,176	)
Receipts from financing activities
Advances received net (2)		—			—			(3	)		(3	)		(3	)		(3	)
Borrowing (net)		(343	)		40			(38	)		733			886			473
Total		(343	)		40			(41	)		730			883			470
Net increase/(decrease) in cash held		116			(495	)		(235	)		250			(129	)		147
Net cash from operating activities and investments in non-financial assets		3,490			1,062			1,513			873			729			1,039
less Finance leases and similar arrangements		—			3			4			2			2			1
GFS Surplus/(deficit)		3,490			1,059			1,509			871			727			1,038

Note:
1.	Numbers may not add due to rounding.
2.	From 2004-05 the Australian Bureau of Statisitcs (ABS) has requested that Commonwealth debt be classified as Advances received, rather than Borrowing.

Table D.8
Public Non-financial Corporations Sector Cash Flow Statement ⁽¹⁾

	2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
							Revised			Revised			Revised			Revised
	Actual			Budget			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million
Receipts from operating activities
Grants and subsidies received		1,031			1,007			1,115			1,187			993			1,133
Sales of goods and services		7,192			7,436			7,824			8,439			9,008			9,247
Other receipts		747			789			716			794			844			874
Total		8,970			9,232			9,655			10,420			10,845			11,254
Payments for operating activities
Payments for goods and services		(4,696	)		(5,109	)		(5,222	)		(5,664	)		(5,883	)		(6,129	)
Grants and subsidies		(129	)		(126	)		(171	)		(77	)		1			1
Interest		(801	)		(798	)		(809	)		(877	)		(921	)		(1,023	)
Other payments		(1,017	)		(915	)		(1,018	)		(1,011	)		(986	)		(950	)
Total		(6,642	)		(6,948	)		(7,220	)		(7,629	)		(7,789	)		(8,101	)
Net cash inflows from operating activities		2,328			2,284			2,435			2,791			3,056			3,153
Payments for investments in non-financial assets
Purchases of non-financial assets		(1,804	)		(3,123	)		(3,084	)		(3,390	)		(3,365	)		(3,175	)
Sales of non-financial assets		384			51			103			42			54			54
Total		(1,420	)		(3,072	)		(2,981	)		(3,348	)		(3,311	)		(3,121	)
Payments for investments in financial assets for policy purposes		(6	)		—			—			—			—			—
Payments for investments in financial assets for liquidity purposes		(52	)		(64	)		(30	)		(39	)		(39	)		(39	)
Receipts from financing activities
Borrowing (net)		(823	)		1,393			1,065			1,140			816			887
Deposits received (net)		2			—			(22	)		1			1			1
Distributions paid		(774	)		(753	)		(767	)		(734	)		(795	)		(1,098	)
Other financing (net)		692			106			146			206			583			186
Total		(902	)		746			422			613			605			(24	)
Net increase/(decrease) in cash held		(53	)		(107	)		(154	)		17			311			(31	)
Net cash from operating activities and investments in non-financial assets		907			(788	)		(546	)		(557	)		(255	)		32
Distributions paid		(774	)		(753	)		(767	)		(734	)		(795	)		(1,098	)
GFS Surplus/(deficit)		133			(1,541	)		(1,313	)		(1,291	)		(1,050	)		(1,066	)

Note:
1.	Numbers may not add due to rounding.

Table D.9
Non-financial Public Sector Cash Flow Statement ⁽¹⁾

	2003-04			2004-05			2004-05			2005-06			2006-07			2007-08
							Revised			Revised			Revised			Revised
	Actual			Budget			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million
Receipts from operating activities
Taxes received		6,318			5,959			6,263			6,203			6,587			6,965
Grants and subsidies received		11,428			12,105			12,676			12,928			13,532			14,368
Sales of goods and services		9,519			9,644			10,073			10,740			11,395			11,704
Other receipts		5,074			3,699			3,811			3,989			4,034			4,235
Total		32,339			31,407			32,823			33,860			35,548			37,272
Payments for operating activities
Payments for goods and services		(18,885	)		(19,595	)		(20,011	)		(21,396	)		(22,853	)		(24,022	)
Grants and subsidies		(3,985	)		(4,555	)		(4,700	)		(4,551	)		(4,710	)		(4,964	)
Interest		(941	)		(928	)		(948	)		(1,026	)		(1,117	)		(1,231	)
Other payments		(1,425	)		(1,302	)		(1,470	)		(1,407	)		(1,375	)		(1,309	)
Total		(25,237	)		(26,380	)		(27,129	)		(28,380	)		(30,055	)		(31,526	)
Net cash inflows from operating activities		7,102			5,027			5,694			5,480			5,493			5,746
Payments for investments in non-financial assets
Purchases of non-financial assets		(4,219	)		(5,841	)		(5,929	)		(6,192	)		(6,103	)		(6,041	)
Sales of non-financial assets		740			335			433			292			288			269
Total		(3,479	)		(5,506	)		(5,496	)		(5,900	)		(5,815	)		(5,772	)
Payments for investments in financial assets for policy purposes		(30	)		—			—			—			5			—
Payments for investments in financial assets for liquidity purposes		(2,451	)		(1,557	)		(1,591	)		(1,186	)		(1,202	)		(1,215	)
Receipts from financing activities
Advances received net (2)		—			—			(3	)		(3	)		(3	)		(3	)
Borrowing (net)		(1,108	)		1,432			1,028			1,873			1,702			1,358
Deposits received (net)		3			—			(22	)		1			1			2
Other financing (net)		26			—			—			—			—			—
Total		(1,079	)		1,432			1,003			1,871			1,700			1,357
Net increase/(decrease) in cash held		63			(604	)		(390	)		265			181			116
Net cash from operating activities and investments in non-financial assets		3,622			(479	)		198			(420	)		(322	)		(26	)
less Finance leases and similar arrangements		—			3			3			2			2			2
GFS Surplus/(deficit)		3,622			(482	)		195			(422	)		(324	)		(28	)

Note:
1.	Numbers may not add due to rounding.
2.	From 2004-05 the Australian Bureau of Statisitcs (ABS) has requested that Commonwealth debt be classified as Advances received, rather than Borrowing.