05 October 2022

Figure 1A: Net operating and fiscal balance Figure 1B: Net capital investment
2022-23 NFO Figure1A 2022-23 NFO Figure1B
The national net operating balance is forecast to improve across the forward estimates as Australia continues to emerge from the impacts of the COVID-19 pandemic.
Figure 1C: Revenue and expenses* Figure 1D: Net debt
2022-23 NFO Figure1c 2022-23 NFO Figure1d
However, continued operating deficits will necessitate borrowing for most governments, increasing national net debt across the forward estimates.
Figure 1E: Net financial worth Figure 1F:  Public debt interest payments
2022-23 NFO Figure1e 2022-23 NFO Figure1f
Public debt interest repayments are expected to increase across the forward estimates due to the increase in debt and interest rates.

*Figure 1C was updated on 11 May 2023 to correct an error. The chart data in the accompanying excel spreadsheet is unaffected.

Figure 2A: Net operating and fiscal balance Figure 2B: Net capital investment5
2022-23 NFO Figure2a
With stronger-than-expected momentum in the labour market and consumption, the Australian Government forecasts an improvement in the net operating balance over the forward estimates.
Figure 2C: Revenue and expenses Figure 2D: Net debt
With rising debt and increasing interest rates, public debt interest payments are expected to grow across the forward estimates.
Figure 2E: Net financial worth Figure 2F:  Public debt interest payments
Public debt interest repayments are expected to increase across the forward estimates due to the increase in debt and interest rates.

Figure 3A: Net operating and fiscal balance Figure 3B: Net capital investment
The New South Wales Budget forecasts a significant increase in net capital investment in 2022-23 and 2023-24, with large investments in transport, hospitals and school infrastructure.
Figure 3C: Revenue and expenses Figure 3D: Net debt

Expenses are expected to fall across the forward estimates as temporary support programs in response to COVID-19 and flood assistance measures are phased out.

Figure 3E: Net financial worth Figure 3F:  Public debt interest payments
With rising debt due to operating deficits and increasing interest rates, public debt interest payments are also expected to increase.

Figure 4A: Net operating and fiscal balance Figure 4B: Net capital investment
Victoria’s Big Build continues, but the COVID-19 pandemic continues to create some uncertainty around the state’s capital program.
Figure 4C: Revenue and expenses Figure 4D: Net debt

Expenses are expected to peak in 2021-22, then fall across the forward estimates.

Figure 4E: Net financial worth Figure 4F:  Public debt interest payments
With rising net debt and increases in interest rates, Victoria’s public debt interest payments are expected to grow substantially across the forward estimates.

Figure 5A: Net operating and fiscal balance Figure 5B: Net capital investment
Queensland Budget demonstrates a net operating surplus for 2021-22, driven by the revenue impacts of higher coal and oil prices and increase in housing activity.
Figure 5C: Revenue and expenses Figure 5D: Net debt

However, expenses are expected to increase in 2022-23 as a result of spending on health, education and flood recovery measures.

Figure 5E: Net financial worth Figure 5F:  Public debt interest payments
Queensland’s public debt interest payments are expected to grow across the forward estimates driven by increasing interest rates.

Figure 6A: Net operating and fiscal balance Figure 6B: Net capital investment
Western Australia expects an operating surplus over the forward estimates period, as the state continues to benefit from high commodity prices.
Figure 6C: Revenue and expenses Figure 6D: Net debt