Report of the Auditor-General on the Finances of the State of Victoria, 2000-01
Overview
The Annual Financial Report presents the financial position of the State of Victoria and the Victorian Budget Sector, and the results of operations and cash flows. The analysis of the State’s overall financial condition shows that it remains strong, but there are a number of challenges facing the Government which will impact on its flexibility in responding to future opportunities. These include managing the impact of increasing expenditure pressures including wage growth, reduced State own-source revenues as a result of the introduction of the National Tax Reforms, and in the event of a downturn in economic conditions. The Government has continued to enhance financial accountability and transparency during the year through the implementation of quarterly financial reports for the Budget Sector and mid-year financial reports covering the whole-of-government. The ongoing challenge for the Government is to continue to enhance the quality of disclosure and reporting of its activities to the public and Parliament, especially in relation to its analysis and commentary accompanying the financial reports.