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APPROPRIATION BILL 1994
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 1994;
Business Franchise Licences (Petroleum Products) Amendment Bill 1994;
Motor Vehicles Taxation (Amendment) Bill 1994;
Road Improvement (Special Funding) Amendment Bill 1994.
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 199394 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:
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 199495 (in
comparison with 199394) is 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 1994.
CASH PRESENTATION
199394
199495
Current
Capital
Current
Capital
$m
$m
$m
$m
Total Payments (including
Treasurer's Advance)
17,103
4,131
17,903
4,195
less User Charges
1,333
n.a.
1,331
n.a.
less Advances Repaid
n.a.
249 n.a.
74
less Asset Sale Proceeds
n.a.
105 n.a.
535
equals Outlays
15,769
3,778
16,572
3,586
plus Advances and Debt
Repaid by Agencies
n.a.
429 n.a.
704
plus Agencies' Increase in
Cash and Investments (net)
183
...
...
...
plus Assets Sales Proceeds not
Retained by Agencies
n.a.
21 n.a.
436
plus Receipts Offset to Outlays
39
...
25 ...
plus User Charges not Retained
by Agencies
49
n.a.
96 n.a.
plus Advances Paid to Other
Agencies
n.a.
220 n.a.
103
plus Reclassification of Capital
Grants and Roads Maintenance
to Equate to Accrual Budgeting
Principles
2,099
(2,099)
2,049
(2,049)
plus Reclassifications for
Government Finance Statistics
Principles
49
(22)
48
(23)
plus Intra Sector Payments
417
162
455
72
less Other Agency Receipts
535
10
544
10
less Agencies' Use of Cash
and Investments (net)
...
263
81
216
less Advances Received
n.a.
1 n.a.
4
equals Consolidated Fund
Appropriation
18,070 2,215 18,620 (a) 2,599 (a)
ACCRUAL
PRESENTATION
199394
199495
Current
Current
$m
$m
Total Expenses (including Treasurer's Advance)
20,633
21,303
less Agency User Charges Revenue
1,372
1,316
less Other Agency Retained Revenues
490
480
less Net Gain on Sale of Property, Plant and
Equipment
2
...
equals Net Cost of Services
18,769
19,507
plus Net Increase in Accrued Revenues
7
...
plus Agencies' Increase in Cash and Investments
(net)
183
...
plus Net Gain on Sale of Property, Plant and
Equipment
2
...
plus In Kind Revenues
24
12
less Non-Funded Expenses
628
638
less Net Increase in Accrued Expenses
249
175
less Net Decrease in Accrued Revenues
...
5
less Net Decrease in Inventories and Prepayments
38
...
less Agencies' Use of Cash and Investments (net)
...
81
equals Consolidated Fund Appropriation
18,070
18,620(a)
(a) Includes amounts appropriated under the Parliamentary Appropriation Bill
1994.