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APPROPRIATION BILL 1993
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The following Bills are cognate with this Bill:
Parliamentary Appropriation Bill 1993;
Business Franchise Licences (Petroleum Products) Amendment Bill 1993;
Motor Vehicles Taxation (Amendment) Bill 1993;
Road Improvement (Special Funding) Amendment Bill 1993.
The object of this Bill is to appropriate various sums of money required for the
ordinary annual services of the Government (in the Bill referred to as recurrent services)
and capital works and services of the Government during the current financial year and
also to appropriate certain expenditures of an unforeseen nature which were made
during the financial year 1992-93 without Parliamentary appropriation.
The Bill relates to appropriations from the Consolidated Fund-the principal account
of the Government for Budget Sector transactions. The Consolidated Fund could be
considered as the "public purse" and largely comprises receipts from, and payments out
of, taxes, fines, some regulatory fees, Commonwealth grants and income from Crown
assets.
In addition to allocations from the Consolidated Fund, most Budget Sector agencies
would have other sources of moneys available to them. These moneys could arise from
user charges, part retention of asset sale proceeds, industry contributions, etc. These are
not appropriated by Parliament as they are not in the nature of taxes or other mandatory
levies for which a service is not provided in return for payment.
The Budget Papers refer to a number of aggregates, each of which has its own
purpose in explaining the financial operations of the Budget Sector. The main Budget
Sector aggregates are:
Appropriation 1993 [Act 1993 No. 59]
Total Payments:
Total cash outflows from all sources of funds (with
adjustments to remove intra sector transactions, e.g.
where one agency partly funds another's operations or
where an agency makes tax payments to Crown receipts).
Useful in measuring the total cash resources applied
directly to a function of government (e.g. health,
education).
Outlays:
Total payments less:
· user charges (in the case of current outlays); and
· asset sales and receipt of advances repaid (in the
case of capital outlays).
Measures the net cost (on a cash basis) of a service to be
met by parties other than by the service recipients.
Total Expenses:
Total amount incurred in the provision of goods and
services, regardless of whether a cash payment is made
to meet the expense in the same year, in a later year, or at
all.
Represents the accrual accounting equivalent of Total
Payments.
Net Cost of Services:
Total expenses less user charges revenue and other
revenues retained by agencies (e.g. donations).
Represents the amount which ultimately has to be funded
by the "public purse" in respect of the services provided
in the year.
Consolidated Fund
Outlays less the use of other funds available to agencies
Appropriation:
(e.g. donations, cash balances).
Represents the amount of cash to be provided from the
"public purse" in the Budget year.
The relationship between the main Budget Sector aggregates for 1993-94 (in
comparison with 1992-93) are shown in the following tables.
The first starts with the total payments figure, showing how this relates to the
Consolidated Fund.
The second starts with the total expenses of the Budget, again indicating how this
figure relates to the Consolidated Fund appropriation. It should be noted that accrual
accounting concepts relate primarily to operating (i.e. current) transactions rather than
capital.
The tables include the financial information relating to the Legislature for which
appropriation is to be made under the proposed Parliamentary Appropriation Act 1993.
1,306
n.a.
less Advances Repaid
n.a.
158 n.a.
269
less Asset Sale Proceeds
n.a.
259 n.a.
109
equals Outlays
15,235
3,516
15,799
3,529
plus Advances and debt
Repaid by Agencies
n.a.
1.400
n.a.
746
plus Agencies' Increase in
Cash and Investments (net)
225
62
. . .
. . .
plus Assets Sales Proceeds
not Retained by Agencies
n.a.
190 n.a.
40
plus User Charges not
Retained by Agencies
41
n.a.
36 n.a.
plus Advances Paid to other
Agencies
n.a.
94 n.a.
60
plus Reclassification of
Capital Grants and Roads
Maintenance to Equate to
Accrual Budgeting Principles
1,931
(1,931) 2,007 (2,007)
plus
Reclassifications for
Government Finance Statistics
Principles
71
14 75 3
plus Intra Sector Payments
359
22
416
22
less Other Agency Receipts
429
11 326 11
less Agencies' Use of Cash
and Investments (net)
. . .
. . .
251
204
less Advances Received
n.a.
94 n.a.
20
equals Consolidated Fund
Appropriation
17,433
3,262 17,756 2,158
ACCRUAL PRESENTATION
1992-93
1993-94
Current
Current
$m
$m
Total Expenses (including Treasurer's Advance)
19,411
20,060
less Agency User Charges Revenue
1,141
1,344
less Other Agency Retained Revenues
368
266
plus Net Loss on Sale of Property, Plant and
Equipment
1
. . .
equals Net Cost of Services
17,903
18,450
plus Net Decrease in Accrued Expenses
. . .
123
plus Net Increase in Inventories and Repayments
26
...
plus Agencies' Increase in Cash and Investments (net)
225
. . .
less Net Loss on Sale of Property, Plant and
Equipment
1
. . .
less Non-Funded Expenses
511
527
less Net Increase in Accrued Expenses
209
...
less Net Decrease in Accrued Revenues
. . .
2
less Net Decrease in Inventories and Repayments
. . .
37
less Agencies' Use of Cash and Investments (net)
. . .
251
equals Consolidated Fund Appropriation
17,433
17,756