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Legislative Assembly for the ACT: 2010 Week 08 Hansard (Tuesday, 17 August 2010) . . Page.. 3401 ..

services provided through the Heritage Unit from the Department of Territory and Municipal Services to the Chief Minister’s Department. This transfer is budget neutral, and I commend the instrument to the Assembly.

Financial Management Act—consolidated financial report

Paper and statement by minister

MS GALLAGHER (Molonglo-Deputy Chief Minister, Treasurer, Minister for Health and Minister for Industrial Relations) (3.40): For the information of members, I present the following paper, which was circulated to members when the Assembly was not sitting:

Financial Management Act, pursuant to section 26—Consolidated Financial Report—Financial quarter ending 30 June 2010.

I seek leave to make a short statement in relation to the paper.

Leave granted.

MS GALLAGHER: This report is required under section 26 of the Financial Management Act 1996. The interim result for the June 2010 is a surplus of $184.8 million. The government is very pleased with this result when compared to the previous estimate of a surplus of $52.2 million published in the 2010-11 budget papers.

These results are the unaudited results to the end of June 2010, and it is almost certain that these will change as the consolidated annual financial statements are prepared and audited. Changes in this stage and the process can be substantial, relating to technical accounting adjustments as well as reconciliation of interagency trading and transfers. Nevertheless, the interim result is pleasing, particularly in that it highlights the continuing strength of the ACT economy.

Nationally, the prospects for the Australian economy remain positive, notwithstanding some increased global uncertainty. The economy performed well during 2009-10 compared to most other advanced economies, placing the country on a relatively sound footing to meet future challenges.

The ACT economy has rebounded strongly following modest growth in 2008-09. The territory’s state final demand increased by 4.9 per cent in year-on-year original terms in the March quarter 2010, reflecting solid growth in the last three quarters of calendar year 2009. Employment growth in the ACT in 2009-10 exceeded expectations as a result of the effectiveness of stimulus programs and the underlying strength of the economy.

The improvement in the net operating balance compared to the estimated outcome is $130.7 million. This improvement in the interim result largely reflects a number of technical outcomes that have occurred following the release of the 2010-11 budget. These include those related to externally driven factors, such as payments by the commonwealth for financial assistance grants brought forward to 2009-10 and those

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