Report of the Auditor-General on the Finances of the State of Victoria, 2003-04
Overview
The state reported a substantial operating surplus for the year—a significant improvement on the previous year’s result. This improvement was mainly due to the impact of improvements in equity markets on investment revenues and superannuation costs. The analysis of the state’s financial performance over a five-year period shows that state revenue growth has outpaced the rate of inflation by 17.5 per cent while growth in state spending has outpaced the rate of inflation by nine per cent. The transition to International Financial Reporting Standards (IFRS) and the outcome of the current review of public sector-specific accounting standards will impact on results reported from 2005 onwards. These impacts will require careful management and communication by government.