Budget Process and How Did They Go in 2022 and 2023

Budget process and how did they go in 2022 and 2023

The Budget is the Commonwealth Government’s main annual financial outline of the economic and fiscal outlook for Australia. It is comprised of a series of documents, including the Budget papers, the Budget speech, the Budget overview, and information on each government Minister’s area of responsibility (their ‘portfolio’). The Budget provides an estimate of money coming in (revenue), money going out (expenses), and how much is owed (gross and net debt). The Budget is also a policy statement on the government’s priority areas of focus and how they intend to meet their objectives.

The Budget is predominantly forward-looking: information contained in the Budget papers is generally presented for a five-year period (current financial year, Budget financial year, forward estimates). Links to 2022-2023 reports for understanding of the full cycle.

  1. The Budget (https://archive.budget.gov.au/2022-23/) sets out the economic and fiscal outlook, and the government’s fiscal strategy.
  2. The Mid-Year Economic and Fiscal Outlook (MYEFO) (https://budget.gov.au/content/myefo/) provides updated information on the government’s fiscal performance, which can be assessed against the fiscal strategy set out in the budget.

The Final Budget Outcome (FBO)     https://archive.budget.gov.au/2022-23-october/fbo/download/fbo-2022-23.pdf provides the final fiscal outcomes for the year.

The budget process is a cycle that continues throughout the year. In a typical year:

September – October: Budget planning commences

December – February: Development and costing of new policy proposals

February – April: Expenditure Review Committee (ERC) decision making

2nd Tuesday of May: Release of the Budget Late June: Parliament passes Appropriation

Bills

Other key dates

By end of January or within 6 months of the release of Budget (whichever is later) MYEFO provides updated information

Within 3 months of EOFY:

Actual fiscal outcomes for the financial year are provided through the FBO

As soon as practicable after the EOFY:

Annual CFS to be provided to the Auditor-General.

So how did they go?

This is a link to the FBO https://archive.budget.gov.au/2022-23-october/fbo/download/fbo-2022-23.pdf

Table 1.1: Overview of key Australian Government general government sector budget aggregates

  2022-23 Estimate at 2022 PEFO $b 2022-23 Estimate at 2022-23 October Budget

$b

2022-23 Estimate at 2023-24 Budget

$b

2022-23 Outcome

$b

Change on 2023-24 Budget $b
Underlying cash balance -77.9 -36.9 4.2

 

22.1 17.9

 

Per cent of GDP

 

-3.4 -1.5 0.2 0.9  
Gross debt(a)

 

977.0 927.0 887.0 889.8 2.8
Per cent of GDP

 

42.5 37.3 34.9 35.2  
Net debt(b)

 

714.9 572.2 548.6 491.0 -57.6
Per cent of GDP

 

31.1 23.0 21.6 19.4  

 

Budget aggregates

Table 1.2: Australian Government general government sector budget aggregates

  2022-23 2022-23 Change on
  Estimate at Outcome 2023-24
  2023-24   Budget
  Budget    
  $b $b $b
Underlying cash balance 4.2 22.1 17.9
Per cent of GDP 0.2 0.9  
Receipts 635.6 649.5 13.9
Per cent of GDP 25.0 25.7  
Tax receipts 588.1 601.3 13.2
Per cent of GDP 23.1 23.8  
Non-tax receipts 47.5 48.2 0.6
Per cent of GDP 1.9 1.9  
Payments(a) 631.4 627.4 4.0
Per cent of GDP 24.8 24.8  
Net interest payments(b) 12.7 11.9 0.8
Per cent of GDP 0.5 0.5  
Revenue 653.8 668.4 14.6
Per cent of GDP 25.7 26.4  
Expenses 644.8 637.0 7.8
Per cent of GDP 25.3 25.2  
Net operating balance 9.0 31.4 22.4
Per cent of GDP 0.4 1.2  
Net capital investment 10.4 9.4 1.0
Per cent of GDP 0.4 0.4  
Fiscal balance 1.5 21.9 23.4
Per cent of GDP -0.1 0.9  

Receipts were $13.9 billion higher than expected, primarily driven by strong company tax returns, all other taxes close to predicted. Payments were $4.0 billion lower than estimated in the Budget, reducing real growth in payments to -4.9 per cent in 2022–23. The outcome for payments is largely driven by lower demand for some programs and reflects delays in some payments, due to ongoing market capacity constraints.

 

 

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