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This Digest was prepared for debate. It reflects the legislation as introduced
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Appropriation Bill (No. 2) 2001-2002
House: House of Representatives
Portfolio: Finance and Administration
To appropriate $4,524,716,000 million for payments for purposes other than the ordinary services of government, including capital expenditure, administered expenses for new outcomes and grants to the States and Territories.
A concise assessment of the 2001-2002 Budget can be found in the Parliamentary Library e-brief Budget 2000.
This Bill, together with the Appropriation Bill (No. 1) 2001-2002 (which deals with ordinary annual services of government) and the Appropriation (Parliamentary Departments) Bill 2001-2002, are introduced in May each year.
Details on the major new expenditure initiatives announced in the Budget are contained in the Bills Digest for Appropriation Bill (No. 1) 2001-2002. The $4,524,716,000 million appropriated by this Bill compares to $5,128,526,000 million for the equivalent 2000-2001 Act.(1)
Clause 6 lists the total amount appropriated by the Bill - that is $4,524,716,000 million.
In regard to allocation to the States and Territories for the outcomes specified in Schedule 1 of the Bill, clause 7 provides that the Finance Minister may issue the lesser of the amount specified in the relevant departmental allocation and the amount determined by the Finance Minister to be the actual expenditure incurred for that purpose. The clause also contains the requirement that the funds may only be allocated to achieve the specified outcome.
Clause 8 contains similar provisions as clause 6 but relates to administered items.
Where an appropriation is made for an administered capital purpose, the outcome that may be achieved must be a purpose listed in Schedule 2 of the Bill or in the Schedule to the Appropriation Bill (No. 1) 2001-2002 (this reflects the allocation of all capital expenditure in this Bill) (clause 9).
In relation to appropriations for capital expenditure for a Department, where an Act provides that an amount is to be allocated to a Department and this Bill contains a capital item for the Department, the Finance Minister must issue the full amount of the item (clause 10). This is similar to clause 7 in Appropriation Bill (No. 1) 2001-2002 and reflects the difference in the Minister's role in relation to Departmental and administered capital items [ie. the Minister has no discretion in relation to Department items].
The Finance Minister will be given power to issue a maximum additional $215 million over the year to take account of urgent unforeseen expenditure or where there has been an 'erroneous omission or understatement' in relation to extra expenses (clause 11). The Minister may also increase the amount in a Departmental capital item/s by a maximum of $20 million per Department (clause 12). Parliament must be notified of increased spending under clauses 11 and 12.
The relevant Minister listed in column 3 of Schedule 1 of the Bill will be able to determine conditions under which payments to the States and Territories may be made (clause 14).
Clause 15 will formally appropriate the funds from the Consolidated Revenue Bill for the purposes of the Bill.
Ian Ireland
1 June 2001
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.
ISSN 1328-8091
© Commonwealth of Australia 2000
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Published by the Department of the Parliamentary Library, 2000.