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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
The following Bills are cognate with this Bill:
Accommodation Levy Bill 1997,
Appropriation (Parliament) Bill 1997,
·
Appropriation (Special Offices) Bill 1997,
·
Appropriation (1996-97 Budget Variations) Bill 1997,
Electricity Supply Amendment Bill 1997,
State Revenue Legislation Amendment Bill 1997.
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, 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.
Explanatory note page 2
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 (eg donations).
Represents the amount which ultimately has to be funded by the "public
in respect of the services provided in the year.
Consolidated Fund Appropriation:
Outlays plus financing transactions (eg debt repayments) 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 1997-98 (in
comparison with 1996-97) 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 1997 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 1997.
Explanatory note page 3
Cash Presentation
1996-97
1997-98
Current
Capital
Current
Capital
$m
$m
$m
$m
Total Payments (including
21,001
3,559
21,862
3,920
Treasurer's Advance)
less
Charges
1,304
1,346
less Advances Repaid to the
596
215
Budget Sector
less Asset Sale Proceeds
364
322
equals Outlays
19,697
2,599
20,516
3,383
plus Advances and Debt Repaid
.a.
980 n.a.
600
by the Budget Sector
plus Advances Repaid to the
...
502 ...
330
Budget Sector
plus Asset Sales Proceeds not
n.a.
222 ...
206
Retained by Agencies
plus Payments Offset to Tax
241
...
244 ...
Revenue
plus Reclassification of Payments
1,257
(1,257)
1,414
(1,414)
to Equate to Accrual Budgeting
Principles
plus
for
54
22
19
4
Government Finance Statistics
Principles
plus Intra Sector Payments
981
11
1,002
11
plus Agencies' Increase in Cash
...
33 18 ...
and Investments (net)
less Other Agency Receipts
1,114
30
1,030
239
less Agencies' Use of Cash and
96
...
...
319
Investments (net)
equals Consolidated Fund
21,020
3,082
22,183
2,562
AppropriationŠ
Accrual Presentation
199697
1997-98
Current
Current
$m
$m
Total Expenses (including Treasurer's
24,439
25,377
Advance)
less Agency User Charges Revenue
1,375
1,421
less Other Agency Retained Revenues
1,042
976
less Net Gain on Sale of Property, Plant
5
3
and Equipment
equals Net Cost of Services
22,017
22,977
plus Net Gain on Sale of Property, Plant
5
3
and Equipment
plus Increase in Inventories and
1
Prepayments
plus In Kind Revenues
36
34
plus Net Decrease in Accrued Expenses
146
136
Agencies, Increase in Cash and
...
Investments (net)
less Non-Funded Expenses
1,051
979
less Net Decrease in Accrued Revenues
12
3
less Income Received in Advance
26
...
less Net Decrease in Inventories and
...
3
Prepayments
less Agencies' Use of Cash and
96
...
Investments (net)
equals Consolidated Fund AppropriationŠ
21,020
22,183
(a)lncludes amounts to be appropriated under the Appropriation (Parliament) Bill 1997
and the Appropriation (Special Offices) Bill 1997.
Explanatory note page 5
As this Bill is being presented prior to the conclusion of the 1996-97
financial year, it does not include details of any adjustment of the 1996-97
Advance to the Treasurer or payments made during 1996-97 under section
22 of the Public Finance and Audit Act 1983. Details of any such payments
will be provided in the Public Accounts for 1996-97 and, in order to comply
with legislative requirements, in the 1998 Appropriation Bill.
Explanatory note page 6