Budget Economic and Fiscal Update 2003

Correction to 2003 Budget Economic and Fiscal Update GAAP Tables

The GAAP tables released as part of the published 2003 Budget Economic and Fiscal Update (BEFU) (B.3) contained a classification error between personnel and operating expenses within the Statement of Financial Performance (page 108).

The correction to the classification of personnel and operating expenses does not affect any key fiscal aggregates such as total expenses, the operating balance or gross debt. There is no affect on the presentation of expenses by function (eg health, education) or the detailed expense tables.

Personnel and operating expenses have been corrected on the web version of the GAAP tables (on Treasury’s website). This adjustment has consequential amendments to the detailed expense information within the Statement of Segments (pages 116-121) and Notes 6 & 7 (page 125).

Detail of the misclassification
The Statement of Financial Performance on page 108 of the 2003 BEFU contained personnel and operating numbers as noted below. They should have read as outlined in the second table below (“amended version”).

The error is due to misclassifying personnel expenses. The figures printed in the 2003 BEFU document understated personnel costs (and overstated operating costs) in 2002. In the figures for 2003-2007 the personnel costs were overstated (with operating costs understated).

Previous version - line items from Statement of Financial Performance (page 108)
2002 Actual 2003 Previous budget 2003 Estimated Actual 2004 Forecast 2005 Forecast 2006 Forecast 2007 Forecast
Personnel expenses 11,143 12,638 13,977 14,517 14,776 14,955 15,149
Operating expenses 20,195 20,675 20,382 21,921 22,579 23,527 23,813

Amended Version
2002 Actual 2003 Previous budget 2003 Estimated Actual 2004 Forecast 2005 Forecast 2006 Forecast 2007 Forecast
Personnel expenses 12,116 12,638 13,245 13,743 13,982 14,137 14,317
Operating expenses 19,222 20,675 21,114 22,695 23,373 24,345 24,645

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