Substantially achieved
All of the Budget papers and related updates have been produced in accordance with the timeframes and other requirements of the Charter of Budget Honesty Act 1998, including:
- The 2018–19 Budget was delivered on 8 May 2018.
- The 2017–18 Mid Year Economic and Fiscal Outlook (MYEFO) was released on 18 December 2017.
- The 2016–17 Final Budget Outcome (FBO) was released on 26 September 2017.
Appropriation Bills were introduced within the required timeframes and in accordance with legislative requirements:
- Appropriation Bill (No. 1) 2018–2019, Appropriation Bill (No. 2) 2018–2019, Appropriation Bill (No. 5) 2017–2018 and Appropriation Bill (No. 6) 2017–2018 were introduced in the House of Representatives on 8 May 2018.
- Appropriation Bill (No. 3) 2017–2018 and Appropriation Bill (No. 4) 2017–2018 were introduced in the House of Representatives on 8 February 2018.
In relation to the accuracy of budget estimates, Finance reports the following results:
- The difference between first forward-year estimated expenses and the FBO was 1.9 per cent on an accrual basis.
- The difference between budget estimated expenses and FBO was 1.6 per cent on an accrual basis.
- The difference between revised estimated expenses at MYEFO and FBO was 2.0 per cent on an accrual basis.
- The difference between revised estimated expenses at budget and FBO was 1.8 per cent on an accrual basis.
Variations between the estimates and final outcome reflect program-specific parameters. Program estimates are regularly reviewed and updated to take account of the best available information to maximise their reliability and accuracy.
A core activity undertaken by Finance to achieve the ‘advising on expenditure’ element of its purpose is to support the Minister for Finance and the Expenditure Review Committee of Cabinet in the preparation of the Budget and related fiscal updates. This activity includes:
- providing effective, timely and accurate advice on budget processes to government entities
- ensuring the budget framework effectively supports decision-making
- informing the Finance Minister and Expenditure Review Committee on the use of government finances
- coordinating, preparing and delivering accurate and timely budget estimates and documentation to the Finance Minister.
In undertaking this activity, Finance contributes to the government’s fiscal target and policy objectives.
Finance has identified the delivery of budget papers, related updates and appropriation bills that are accurate, delivered within required timeframes and meet fiscal and policy objectives and legislative obligations as an appropriate measure of Finance’s performance in undertaking this activity.
Budget papers and updates, together with annual appropriation acts, are essential elements of the Australian Government budget process:
- The budget papers and related updates support the budget-related decisions of government, providing the fiscal outlook for the Australian economy and highlighting major new initiatives of government.
- annual Appropriation Acts provide funding for government operations and programs and also for investment in assets and reduction of liabilities.
Achieved
All of the government’s financial statements were prepared in accordance with publicly agreed timeframes:
- The 2016–17 Final Budget Outcome was released on 26 September 2017.
- The 2017–18 monthly financial statements were provided to the Minister for Finance on average within 21 days of the end of the month since the release of the Final Budget Outcome.
The government’s 2016–17 consolidated financial statements were signed by the Finance Minister and received an unmodified report from the Auditor-General on 27 November 2017.
Another measure of Finance’s performance in achieving the ‘advising on expenditure’ element of its purpose is through the timely public release of complete and accurate government financial statements.
The Australian Government has a robust financial reporting framework, with key reporting outputs including:
- monthly financial statements, which show how actual expenditure is tracking against the monthly profile and full-year estimate
- the Final Budget Outcome, which provides the outcome for the latest financial year with an emphasis on a government finance statistics presentation of the general government sector
- consolidated financial statements, which present the whole-of-government and general government sector financial reports for a financial year.
Monthly financial statements, the Final Budget Outcome and the consolidated financial statements are required by legislation and are integral to the Commonwealth’s accrual budgeting and reporting framework and complement the budget process by providing outcomes against budget estimates.
Achieved
The cash needs of each and every Commonwealth entity were met every day of the reporting period.
Finance also contributes to the ‘advising on expenditure’ element of its purpose by managing the daily disbursement of cash to Commonwealth entities for operating purposes.
Finance’s robust financial systems and frameworks support the processing of a daily disbursement of cash through the Central Budget Management System to meet the daily cash requirements of Commonwealth entities. This is crucial. Meeting the funding requirements of entities enables them to continue to deliver on the government’s policy objectives, including the provision of services to the community. In order to ensure that no entity is prevented from delivering its services due to a lack of cash, and to ensure the ongoing operations of government, Finance has a target of meeting all entities’ cash requirements on each day of the financial year.
