Victoria’s net result from transactions in the General Government Sector (GGS) fell significantly in the September quarter, according to figures released by Treasurer John Lenders and Finance Minister Tim Holding. Reflecting deteriorating global financial conditions, the September Quarterly Financial Report shows the results from transactions for the three-month period to 30 September amounted to just $96 million. This compares with $458 million for the same period last year and a 2008-09 budgeted full-year net result from transactions of $828 million.
Finance figures show sharp drop
Mr Lenders said the figure primarily reflected a weakening of land transfer duty and income tax equivalent revenues, as well as “normal seasonal variations” in other revenue and the timing of expenses for Departments within the GGS. He said Victoria remained in “a sound budget position”. “The fundamentals of the Victorian economy are sound fundamentals and the State is as well positioned as any for tougher global economic times,” Mr Lenders said. The net result for the quarter was a deficit of $3.8 billion which the Treasurer said was caused by actuarial adjustments and revaluations to the State’s superannuation liabilities. He cautioned on extrapolating the likely outcome for the year based on the quarterly results. He said revenue from transactions was $8,770 million, or 23.2 per cent of the Budget estimate of $37,810 million for the year. Taxation revenue was 22.0 per cent of the full year 2008-09 budget, “mainly driven by the softening of the property market”. “Land transfer duty revenue for the September quarter was below pro rata mainly due to reduced availability of credit, hampering the financial sector’s ability to lend as freely as in recent years, as well as associated lower levels of consumer and business sentiment,” the Treasurer said. He said dividends and income tax equivalent and rate equivalent revenue for the first quarter was $52 million compared with the full year Budget estimate of $670 million. Other current revenue was 22.3 per cent of the full year Budget estimate which included fines revenue which was lower than expected and estimated third party revenue, such as donations, which were forecast to be received later in the year. Expenses from transactions were $8,675 million, or 23.5 per cent of the full year Budget estimate. Mr Lenders also said the 2008-09 Budget Update would be released by 15 December and the Quarterly Financial Report for the three months to 30 September can be viewed at www.dtf.vic.gov.au
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