Premier Giddings releases the Mid-Year Financial Report later today. The following are five things to look for:
1. For 2013/14 do government’s cash outlays still exceed cash inflows? How long will this continue?
2. The government survived 2012/13 by cutting the capex budget. Does the revised budget for 2013/14 include further downward revisions of capex amounts (infrastructure, roads etc)? How long can this continue?
3. As the Auditor General confirmed yesterday, the government has survived by internally borrowing amounts received for other purposes, the Royal Hobart Hospital for example. Does the Mid Year update confirm a rise in the level of internal borrowings?. What is the expected figure as at 30th June 2014.
4. When will we be able to start repaying the internal borrowings? In other words when will cash receipts exceed cash outlays?
5. Have the capex outlays relating to the Royal Hobart Hospital ($500 million+) been rescheduled? Or is the upgrade still on track?
• Department of Treasury and Finance, Revised Estimates Report 2013 – 14 (including December Quarterly Report), February 12, 2014. (Pdf)