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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:
· Appropriation (Parliament) Bill 1998,
· Appropriation (Special Offices) Bill 1998,
· Appropriation (199798 Budget Variations) Bill 1998,
· Electricity Supply Amendment (Transmission Operator's Levy)
Bill 1998,
· Premium Property Tax Bill 1998,
· Public Finance and Audit Amendment Bill 1998,
· State Revenue Legislation Further Amendment Bill 1998.
The Bill relates to appropriations from the Consolidated Fund-the principal
account of the Government for General Government Budget Dependent
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 General
Government Budget Dependent 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. The main
Budget 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 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 aggregates for 199899 (in
comparison with 1997-98) is shown in the following tables.
The first starts with the total outlays 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 1998 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 1998.
Explanatory note page 3
Cash Presentation
199798
199899
Current
Capital
Current
Capital
$m
$m
$m
$m
Total Outlays (including Treasurer's
21,290
3,487
21,845
3,112
Advance)
plus Advances and Debt Repaid by the
n.a.
1,808
n.a.
512
Budget
plus Advances Repaid to the Budget
...
189 ...
43
plus Asset Sales Proceeds not Retained
n.a.
123 ...
184
by Agencies
plus Payments Offset to Tax Revenue
491
...
291 ...
plus Reclassification of Payments to
1,077
(1,077)
1,016
(1,016)
Equate to Accrual Accounting Principles
plus Intra Sector Payments
324
1
125
3
plus Agencies' Increase in Cash and
163
...
349
706
Investments (net)
less Other Agency Receipts
693
368
678
745
less Agencies' Use of Cash and
...
395 ...
...
Investments (net)
equals Consolidated Fund
22,652
3,768
22,948
2,799
Appropriation(a)
Explanatory note page 4
Accrual Presentation
199798
199899
Current
Current
$m
$m
Total Expenses (including Treasurer's Advance)
26,317
25,965
less Agency User Charges Revenue
2,396
2,430
less Other Agency Retained Revenues
1,095
973
less Net Gain on Sale of Property, Plant and
28
156
Equipment
equals Net Cost of Services
22,798
22,406
plus Net Gain on Sale of Property, Plant and
28
156
Equipment
plus Increase in Inventories, Prepayments and
...
1,630
Accrued Revenues
plus Net Decrease in Accrued Expenses
515
...
plus Agencies' Increase in Cash and Investments
315
...
(net)
less Non-Funded Expenses
954
688
less Increase in Accrued Expenses
50
479
less Agencies' Use of Cash and Investments (net)
...
77
equals Consolidated Fund Appropriation(a)
22.652
22,948
(a) Includes amounts to be appropriated under the Appropriation (Parliament)
Bill 1998 and the Appropriation (Special Offices) Bill 1998.
Explanatory note page 5