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Appropriation Bill 1995
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
The following Bills are cognate with this Bill:
Appropriation (Parliament) Bill 1995,
Appropriation (Special Offices) Bill 1995,
· General Government Debt Elimination Bill 1995,
· Motor Vehicles Taxation Amendment Bill 1995,
Business Franchise Licences (Petroleum Products) Amendment Bilk
1995,
Road Improvement (Special Funding) Further Amendment Bilk 1995.
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
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, eg 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 (eg 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.
Explanatory note page 2
Net Cost of Services:
Total expenses less user charges revenue and other revenues retained by
agencies (eg 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 Appropriation:
Outlays less the use of other funds available to agencies (eg 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 1995-96 (in
comparison with 1994-95) 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
(ie 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 Appropriation
(Parliament) Act 1995 and to the Ombudsman, State Electoral Office,
Independent Commission Against Corruption and Office of the Director of
Public Prosecutions for which appropriation is to be. made under the
proposed Appropriation (Special Offices) Act 1995.
Explanatory note page 3
Cash Presentation
1994-95
1995-96
Current Capital Current Capital
$m
$m
$m
$m
Total Payments (including
Treasurer's Advance)
18,895
3,228
19,748
3,399
less User Charges
1,156
n.a.
1,171
n.a.
less Advances Repaid
586
...
116
. D .
less Asset Sale Proceeds
n.a.
535 n.a.
1 74
equals Outlays
17,739
2,107
18,576
3,110
plus Advances and Debt Repaid by
Agencies
n.a.
943 n.a.
452
plus Agencies' Increase in Cash
and Investments (net)
...
..
..
...
plus Assets Sales Proceeds not
Retained by Agencies
n.a.
399 n.a.
16
plus Receipts Offset to Outlays
32
565
34
158
plus User Charges not Retained by
Agencies
3
n.a.
10 n.a.
plus Advances Paid to Other
Agencies
n.a.
22 n.a.
14
plus Reclassification of Capital
Grants to Equate to Accrual
Budgeting Principles
1,211
(1,211)
1,225
(1,225)
plus Reclassifications for
Government Finance Statistics
Principles
(26)
14
87
(92)
plus Intra Sector Payments
57 1
...
978 ...
less Other Agency Receipts
663
14
1,066
18
less Agencies' Use of Cash and
Investments (net)
...
61
37
54
less Advances Received
...
22 ...
14
equals Consolidated Fund
Appropriation
18,867
2,742
19,807
2,347
Explanatory note page 4
Accrual Presentation
1994-95 1995-96
Current Current
$m
$m
Total Expenses (including Treasurer's Advance)
22,303
23,254
less Agency User Charges Revenue
1,252
1,230
less Other Agency Retained Revenues
75 1
1,073
plus Net Loss on Sale of Property, Plant and Equipment
57
14
equals Net Cost of Services
20,357
20,965
plus Net Increase in Accrued Revenues
76
...
plus Savings initiative yet to be allocated to portfolios
...
20
plus In Kind Revenues
51
14
less Non-Funded Expenses
1,342
1,050
less Net Increase in Accrued Expenses
215
82
less Net Decrease in Accrued Revenues
..
10
less Net Decrease in Inventories and Prepayments
3
...
less Agencies' Use of Cash and Investments (net)
...
37
less Net Loss on Sale of Property, Plant and Equipment
57
15
equals Consolidated Fund Appropriation(a) 18,867
19,807
(a) Includes amounts appropriated under the Appropriation (Parliament) Bill 1995 and
the Appropriation (Special Offices) Bill 1995.
Explanatory note page 5