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Tuesday, 19 August 1980
Page: 63

The following table shows outlays in 1979-80 and 1980-81 classified according to broad economic types of expenditure.

Budget Outlays - By Economic Type

(a)   Includes unfunded employee retirement benefits. (Jb) Includes net advances to Commonwealth authorities, the public and overseas.

(c)   Consists of subsidies, grants for private capital purposes and purchases of existing assets.

The table shows that cash benefits to persons and transfers and net advances to the States, the Northern Territory and local government authorities together contribute over 65 per cent of the projected increase in 1980-81 outlays.

Other prominent features are: o rapid growth in other net advances, reflecting the fact that estimated repay ments of advances by the Australian Postal Commission, the Australian Industry Development Corporation and government airlines are some $109 million less in 1980-81 than in 1979-80; o strong growth in 'Other' transfers arising particularly from increased grants to industry for export expansion and market development; and o a turnaround from decline to strong growth in Commonwealth direct capital expenditure, with planned outlays on airport facilities being a major contributing factor.

Estimates of outlays in 1980-81, classified by major functions, are set out and explained in detail in Statement No. 3. The table below summarises the figures for 1979-80 and estimates for 1980-81 in the functional format:

Budget Outlays - By Function

1979-80 1980-81


Change on of Total

Points which might be noted include the following: ° Continued growth in outlays under the Health and Social Security and Welfare functions, which reflects growth in beneficiary numbers, indexation arrangements for many benefits, and effects of budget measures, is estimated to account for over 36 per cent of the total increase projected for 1980-81. ° The above-average increase projected for 1980-81 Defence outlays (17.7 per cent) derives from the increased priority being accorded by the Government to these outlays. ° The estimated rapid growth in outlays on Economic Services arises from a number of factors, including additional assistance to industry for export expansion, export market development and industrial research and development, increased outlays on the petroleum products freight subsidy scheme and airport facilities, and reduced repayments of advances from Commonwealth authorities such as the government airlines and the Australian Industry Development Corporation. ° The increase of $1117 million in expenditure Not Allocated to Function largely reflects growth in tax-sharing entitlements of States, the Northern Territory and local government (up an estimated S744 million), larger public debt interest payments (up S186 million), and the bulk provision of SI 25 million included for prospective increases in wage and salary payments for public servants other than those paid from votes within the defence function.

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