Responsibly managing the Government's finances
The strongest fiscal management tool the Government has in the Budget is the setting of new spending limits through the operating and capital allowances.
The operating allowance remains at $1 billion for Budget 2016, $2.5 billion for Budget 2017 and $1.5 billion for both Budget 2018 and Budget 2019. Some rephasing of these allowances between Budgets is possible, however, to meet particular spending priorities.
Over the past few years, the Future Investment Fund has funded $4.7 billion of new capital spending but has now been fully allocated (Figure 6). The capital allowance for Budget 2016 has therefore been increased by $1 billion. The Government is looking at ways to reprioritise existing capital to cover at least some of this increased investment. The fiscal forecasts in the Half Year Update include this $1 billion increase.
- Figure 6 - Future Investment Fund allocations ($4.7 billion)
- Source: The Treasury
The Government remains committed to effectively and efficiently managing its large balance sheet, including using private sector capital and disciplines where appropriate, getting better performance from Crown-owned entities and reprioritising capital spending to higher-value uses.
-  Figures may not sum due to rounding.