Fiscal Management
Scope of Appropriation
This output class is limited to the development of the budget strategy and advice, and activities of the annual budget process.
Significant Work Completed During 2009/10
- Reviewed the Budget 2009 process including the forming of recommendations for Budget 2010.
- Substantially redesigned the budget process which increased the scrutiny on baseline expenditure and better supported the Government to advance its priorities consistent with its fiscal strategy.
- Released budget guidance.
- Convened a public service Chief Executives Group to provide appropriate opportunities for these stakeholders to assist in the design and management of the budget process.
- All budget-related outputs were delivered to the required quality standard in accordance with the overall timetable and the Public Finance Act 1989.
| Performance Dimensions | Target | Performance for 2009/10 |
|---|---|---|
| All policy outputs comply with the Treasury's Quality Standards for Policy Advice, as assessed by the Minister three times during the year. | Rated as meeting and frequently exceeding expectations |
Not assessed in 2009/10. Refer to page 60 for further information on the application of the policy standard during 2009/10. |
|
Production of advice that provides options which allow the Government to deliver a credible fiscal strategy consistent with the fiscal prudence provisions of the Public Finance Act 1989. Where this advice is underpinned by modelling, the models are externally quality assured and, where appropriate, assumptions are tested with suitably qualified external experts. |
Achieved |
Achieved. The Treasury provided advice to redesign the budget process; significantly changing this process from the previous year. These changes included allocating most of the budget operating allowance to specific government priority areas much earlier in the process. A consequence of this targeted approach was that the majority of Votes received no additional resources which increased the focus on reprioritising baseline funding to better support government priorities. In Budget 2010 over $1.8 billion of baseline funding was reprioritised as a result of this approach. |
| Advice and processes required as part of annual budget process assist the Government to pursue its policy priorities in accordance with the principles of responsible fiscal management and support effective and efficient management of public financial resources. (See note on Management of the annual financial cycle below.) | Achieved |
Achieved. The Minister of Finance was kept informed on at least a weekly basis through the year on the balance between budget contingency and the Budget 2010 operating and capital allowances. The budget process was designed and managed to support the Government to implement policy priorities and deliver the budget consistent with the Budget Policy Statement (BPS), the FSR and in accordance with the principles of responsible fiscal management and support effective and efficient management of public financial resources. |
| 2009/10 Actual $000 |
Supp. Estimates - Voted $000 |
Main Estimates $000 |
2008/09 Actual $000 |
|
|---|---|---|---|---|
| Expenses | 2,972 | 3,197 | 2,422 | |
| Funded by: | ||||
| Revenue Crown | 2,925 | 3,147 | 2,378 | |
| Other Revenue | 47 | 50 | 44 |
In 2009/10, the Policy Advice and Management: Macroeconomic appropriation was separated across four output classes within a Macroeconomic Policy Advice and Management MCOA. The structure was established to ensure that the macroeconomic outputs were sensibly aggregated and to allow for more comprehensive performance measures. A summary of the MCOA financials and the 2008/09 comparatives are provided on page 26.
Actual 2009/10 output class expenditure was $225,000 or 7% under the Supplementary Estimates budget owing to efficiencies around the budget production.
Notes:
Management of the annual financial cycle: Performance expectations
All process guidance, incorporating any appropriate changes arising from the annual process review, is released no later than 30 working days prior to departmental submission.
All guidance issued is sufficiently comprehensive and clear and does not require formal clarification.
Budget strategy advice and the BPS are developed to support the Government's fiscal policy objectives.
Treasury advice on the budget provides options that enable the Government to deliver the budget consistent with the BPS.
All statutory requirements of the Public Finance Act 1989 are met.
Annual review of process stakeholders completed quarter one to determine changes to improve future processes.
