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Charter of Budget Honesty Bill 2009
Charter of Budget Honesty Bill 2009
Explanatory Notes
General Outline
Policy Objectives
The Charter of Budget Honesty Bill provides a framework for the conduct
of Government fiscal policy. The purpose of the Charter is to improve
fiscal policy outcomes, by requiring fiscal strategy to be based on
principles of sound fiscal management and by facilitating public scrutiny of
fiscal policy and performance.
Reasons for the Bill
The Bill addresses two objectives, to:
· provide a framework for the conduct of Government fiscal policy; and
· improve fiscal policy outcomes by facilitating public scrutiny of fiscal
policy and performance.
Achievement of the Objectives
· The Bill requires the release by the Under Treasurer of the
pre-election fiscal and economic outlook update report within 15 days
after the issuance of the writ for a general election.
· The Bill provides for costing of policy proposals of both the
Government and the Opposition during an election period.
Alternatives to the Bill
Non legislative means would not allow the objectives to be met. By
legislating Treasury's precise role and actions in an election context, the
Bill protects Treasury's independence.
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Charter of Budget Honesty Bill 2009
Estimated Cost for Government Implementation
There are no financial implications for implementing the requirements of
the Bill.
Consistency with Fundamental Legislative Principles
The proposed legislation is consistent with fundamental legislative
principles.
Consultation
The Department of the Premier and Cabinet was consulted in preparing the
legislation.
The legislation is substantially uniform with relevant sections of the
Commonwealth Charter of Budget Honesty Act 1998.
Notes on Provisions
Clause 1 states the short title of the Bill.
Clause 2 identifies the Charter of Budget Honesty in a schedule to the Bill
and states that nothing in the Charter creates rights or duties that are
enforceable in judicial or other proceedings.
Schedule
Part 1 Purpose and overview
Section 1 provides the purpose of the Bill and of the Charter.
Section 2 provides definitions of terms used in this Bill.
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Charter of Budget Honesty Bill 2009
Part 2 Pre-election economic and fiscal
outlook report
Section 3 requires the Under Treasurer to release publicly a pre-election
economic and financial outlook report within 15 days after the issue of a
writ for a general election.
Section 4 provides the purpose of the report.
Section 5 requires for the report to involve a full fiscal update of the current
financial year and the following three years for the General Government
sector including, to the fullest extent possible, all Government decisions
since the last update of the forward estimates that would have a material
fiscal effect and that were made or were in existence before the issue of the
writ for the election. The report will also include a short commentary on
the fiscal position including changes since the last update and the
sensitivity of the fiscal estimates to changes in the economic and other
assumptions.
Section 6 requires the Treasurer to disclose to the Under Treasurer details
of any Government decision or any other circumstance that may have
material implications for the fiscal or economic outlook and that the Under
Treasurer could not reasonably be expected to be aware.
Section 7 requires statements by the Treasurer - that the disclosure
requirements referred to above in section 6 have been complied with - and
from the Under Treasurer. The statement from the Under Treasurer must
state that, to the fullest extent possible, the information in the report reflects
the best professional judgement of officers of the Treasury, takes into
account all economic and financial information available, including
Government decisions or other information disclosed by the Treasurer.
Section 8 requires State Government agencies to provide information in a
timely manner to the Under Treasurer, to help prepare the report, unless it
is not practicable to do so or if doing so would contravene Australian or a
State law.
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Charter of Budget Honesty Bill 2009
Part 3 Costing of election commitments
Section 9 provides that, during the caretaker period for a general election,
the Premier or the Leader of the Opposition may request the Under
Treasurer to prepare costings of publicly announced policies. A request for
costing of policies is to be in writing, should state the intention of the
policy and should outline fully the policy to be costed, giving details
including the assumptions to be used.
A request for policy costing is to be given to the Under Treasurer. The
Premier may not request costing of Opposition policies. The Leader of the
Opposition may not request costings of Government policies.
The Under Treasurer is not obliged or authorised to make any comment on
the rationale or efficacy of policies provided for costing.
Section 10 provides that, the Premier and the Leader of the Opposition may
at any time withdraw a request for costing of a policy, by writing to the
Under Treasurer.
Section 11 provides that the Under Treasurer may issue guidelines
recommending approaches or methods to be used in preparing policy
costings. If the Under Treasurer needs more information to cost aspects of
a policy, the Under Treasurer must write to the Premier or the Opposition
Leader, as the case requires, for more information.
Section 12 requires the public release of policy costings no less than two
days before polling day for the election, unless the request for costing has
been withdrawn. All information including assumptions provided with the
policy must be released with the costing. If insufficient information has
been provided to allow costing within the appropriate time period, the
Under Treasurer must release a statement to that effect no less than two
days before polling day for the election. The role of the Under Treasurer is
strictly limited to costing in the time period specified in this legislation.
The Under Treasurer is not obliged or authorised to take any further action
in relation to a policy costing beyond that specified in this legislation.
Section 13 requires State Government agencies to provide information in a
timely manner to the Under Treasurer, to help prepare policy costings,
unless it is not practicable to do so or if doing so would contravene
Australian or a State law.
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© State of Queensland 2009