Treasurer’s Annual Financial Statement cont… While the movement in Net Debt does show a worsening trend in absolute terms, it can be put into persective by relating Net Debt to Total Public Sector revenue which provides an indicator of the underlying capacity of the public sector to meet its liabilities and this is illustrated in Figure 5, below: Figure 5 Total Public Sector Net Debt as Percentage of Total Revenue As noted above, Figure 5 illustrates the extent to which Net Debt as a percentage of total revenue declined over the five years to 2009-10, but increased sharply for 2010-11 as borrowings increased and financial assets declined during 2010-11.
Treasurer’s Annual Financial Statement cont… While the movement in Net Debt does show a worsening trend in absolute terms, it can be put into persective by relating Net Debt to Total Public Sector revenue which provides an indicator of the underlying capacity of the public sector to meet its liabilities and this is illustrated in Figure 5, below: Figure 5 Total Public Sector Net Debt as Percentage of Total Revenue As noted above, Figure 5 illustrates the extent to which Net Debt as a percentage of total revenue declined over the five years to 2009-10, but increased sharply for 2010-11 as borrowings increased and financial assets declined during 2010-11.
2012_March.docx