Notes to the Financial Statements (continued)

NOTE 6: Interest expenses
	2010 Actual $m	2011 Previous Budget $m	2011 Forecast $m	2012 Forecast $m	2013 Forecast $m	2014 Forecast $m	2015 Forecast $m
By type
Interest on financial liabilities	2,724	4,537	3,427	4,592	5,260	5,662	6,199
Interest unwind on provisions	53	75	79	93	130	143	151
Total interest expenses	2,777	4,612	3,506	4,685	5,390	5,805	6,350
By source
Core Crown	2,311	3,230	3,078	3,714	4,325	4,701	5,254
Crown entities	245	181	247	272	286	301	301
State-owned enterprises	845	1,733	1,010	1,392	1,442	1,537	1,601
Inter-segment eliminations	(624)	(532)	(829)	(693)	(663)	(734)	(806)
Total interest expenses	2,777	4,612	3,506	4,685	5,390	5,805	6,350

NOTE 7: Insurance expenses
	2010 Actual $m	2011 Previous Budget $m	2011 Forecast $m	2012 Forecast $m	2013 Forecast $m	2014 Forecast $m	2015 Forecast $m
By entity
ACC	2,922	3,668	3,103	3,042	3,423	3,777	4,118
EQC	64	39	6,389	78	128	128	128
Other	20	18	27	18	19	20	20
Total insurance expenses	3,006	3,725	9,519	3,138	3,570	3,925	4,266

NOTE 8: Forecast new spending and top-down expense adjustment
	2010 Actual $m	2011 Previous Budget $m	2011 Forecast $m	2012 Forecast $m	2013 Forecast $m	2014 Forecast $m	2015 Forecast $m
Forecast new operating spending
Unallocated new spending from Budget 2011	-	394	-	463	240	215	217
Forecast new spending for Budget 2012	-	-	-	-	800	800	800
Forecast new spending for Budget 2013	-	-	-	-	-	800	800
Forecast new spending for Budget 2014	-	-	-	-	-	-	1,190
Total forecast new operating spending	-	394	-	463	1,040	1,815	3,007
Operating top-down adjustment	-	(410)	(250)	(310)	(50)	(50)	(50)

Unallocated new spending from Budget 2011 represents expenses included in Budget 2011 that have yet to be allocated.

Forecast for future new spending indicates the expected spending increases from future Budgets.

NOTE 8: Forecast new spending and top-down expense adjustment (continued)
	2011 Forecast $m	2012 Forecast $m	2013 Forecast $m	2014 Forecast $m	2015 Forecast $m	Post-2015 Forecast $m	Total Forecast $m
Forecast new capital spending (annual)
Unallocated new spending from Budget 2011	-	142	4	1	-	-	147
Forecast new spending for Budget 2012	-	100	350	200	150	100	900
Forecast new spending for Budget 2013	-	-	100	350	200	250	900
Forecast new spending for Budget 2014	-	-	-	100	350	450	900
Forecast new spending for Budget 2015	-	-	-	-	100	800	900
Balance sheet funding of new capital spending	-	(100)	(450)	(650)	(800)	(1,600)	(3,600)
Total forecast new capital spending	-	142	4	1	-	-	147
Forecast new capital spending (cumulative)	-	142	146	147	147
Capital top-down adjustment (cumulative)	(100)	(270)	(270)	(270)	(270)

Unallocated new spending from Budget 2011 represents capital spending included in Budget 2011 that has yet to be allocated.

Forecast for future new spending indicates the expected capital spending increases from future Budgets.

These forecasts assume that, instead of borrowing to fund this new capital spending, the Government will source funding from its existing balance sheet. The forecasts therefore assume that the allowance for new capital spending ($900 million each Budget spread across five years) will be met through a corresponding reduction in assets.This is referred to as "balance sheet funding of new capital spending".

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Notes to the Financial Statements (continued)

By type

By source

Forecast new operating spending

Forecast new capital spending (annual)