GOVERNMENT BORROWINGS

97 Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (30 September 2008). With respect to the 2008-09 budget papers, what is the estimated borrowings to fund the Consolidated Account in 2007-08, what are the forward estimates beyond 2008-09 and why have these borrowings increased from $107 million in 2006-07 to $612 million in 2008-09?Hidden_Answer

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): I have been provided the following information:

The Consolidated Account is funded from a combination of dividends, taxation, revenues from the Commonwealth and some agency receipts. Payments from the Consolidated Account cover operations of current year and capital spend that will create assets for the future.

Borrowings are required from time to time to fund annual deficiencies in the Consolidated Account. These primarily arise because of the impact of capital spending.

Estimated borrowings to fund the Consolidated Account are higher in 2008-09 compared with 2006-07. This reflects a significant expansion of the Government's capital program projected at the time of the 2008-09 Budget.