• 2015-16 Government Mid-year Financial Projections Statement (or Mid-year Review)

    The 2015-16 Government Mid-year Financial Projections Statement (or Mid-year Review) updates the economic assumptions and financial projections released in the State Budget in May this year.

    The 2015-16 Mid-year Review shows that:

    • The economic and fiscal outlook has deteriorated further since the 2015-16 Budget was finalised in April 2015.
    • With slowing world demand resulting in further commodity price declines, a contracting domestic economy as business investment continues to decline from its peak in 2012-13, and lags in the GST distribution system exacerbating volatility in the State’s revenue base, the State’s finances are facing an unprecedented income shock.
    • General government revenue in 2015-16 is now estimated to decline by $1.8 billion or 6.5% relative to 2014-15.
    • In this environment, operating deficits are unavoidable. The general government operating balance is now forecast to be in a $3.1 billion deficit position in 2015-16 (compared to the $2.7 billion deficit forecast at Budget-time), followed by projected deficits of $3 billion in 2016-17 and $820 million in 2017-18, before an expected return to surplus (of $641 million) in 2018-19.
    • As a result of these deficit projections, total public sector net debt has been revised up since Budget.

    The Government is also continuing to drive wage restraint and other spending efficiencies across the public sector, as well as progressing its asset sales program, to ensure the State’s budget settings over the medium to longer term are sound.

    Details of the changes to the outlook and the Government’s response to these challenges are available in the Mid-year Review.

    Published date: 21 December 2015