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Legislative Assembly for the ACT: 2002 Week 11 Hansard (26 September) . . Page.. 3390 ..
of the dividend payment in the original 2001-2002 budget was $8.3m (average investment balance of $169m returning an estimated 4.9%). The revised amount of Territory Banking Account related investment interest estimated to be earned and paid to the CFU Territorial account as an interest payment in the estimated 2001-2002 outcome was $8.6m (average investment balance of $186m returning an estimated 4.6%).
(2) What is the reason for borrowing costs being estimated to fall by nearly 3 per cent during 2002-03.
Note 2001-02 2002-03
Est Outcome Budget Variation of
$'000 $'000 %
Borrowing cost
Payments to Financial Institutions c 34,915 32,686 -6%Payments to other ACT Government Entities d 26,899 27,348 2%
Total Borrowing Cost 61,814 60,034 -3%
Notes to Table
c) Payments to Financial Institutions for debt administered on behalf of the Territory
The decrease between the 2001-2002 estimated outcome and the 2002-2003 Budget is mainly due to a change to the Territory's debt structure. At the end of 2001, fixed rate Inscribed Stock Bonds ($67m at 12%) matured and were refinanced by way of floating rate commercial paper. The effect of this is a lower annual interest cost on these borrowings in 2002-2003.d) Investment Interest Payments To ACT Government Agencies
The increase of 2% between the 2001-2002 estimated outcome and the 2002-2003 Budget is due to a changed set of assumptions for the funds held on investment. The 2001-2002 estimated outcome assumed an average investment balance of $585m returning an estimated 4.6% to agencies and the Territory Banking Account. The 2002-2003 Budget estimates assume an average investment balance of $506m returning an estimated 5.4% to agencies and the Territory Banking Account.
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