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Appropriation (2007/2008) Bill 2007
Introduction Print
EXPLANATORY MEMORANDUM
General
This Bill provides appropriation authority for payments from the
Consolidated Fund for the ordinary annual services of the Government for
the 2007/2008 financial year. The amounts contained in Schedule 1 to the
Bill provide for the ongoing operations of departments, new output initiatives
and new asset investment in so far as these are funded by way of annual
appropriation. The Schedule also includes payments made on behalf of the
State. These payments are not related to the direct provision of outputs by
departments and are generally on-passed by departments for specific
purposes. In some cases, the annual appropriations in Schedule 1 include line
items that are specifically referenced in separate legislation, but unlike
special appropriations, require annual appropriations from Parliament.
In addition to the annual appropriations contained in this Bill, funds are
also made available to departments by way of special appropriation.
Special appropriations arise through provisions that are contained in
legislation. These appropriations provide for the specific purposes set out
in that legislation and they do not lapse annually like the annual
Appropriation Act. Details of these can be found in Table 5.4 of Budget
Paper No. 4: Statement of Finances.
Where an item in Schedule 1 provides that section 29 of the Financial
Management Act 1994 applies, money received from the provision of
services or asset sales by that department or by specific purpose payment by
the Commonwealth or by a municipal council may be credited to that item
during the financial year and is deemed to have been appropriated. Details of
appropriations annotated pursuant to section 29 of the Financial
Management Act 1994 may be found in Table 5.5 of Budget Paper No. 4:
Statement of Finances.
Unapplied appropriation under the Appropriation (2006/2007) Act 2006 has
been estimated and is included in the Budget Papers. Prior to 30 June 2007
actual unapplied appropriations are finalised, approved carryover amounts
determined, and the 2007/2008 appropriations increased accordingly,
pursuant to section 32 of the Financial Management Act 1994.
561035 1 BILL LA INTRODUCTION 1/5/2007
Advances during 2006/2007 from the Treasurer's Advance and those
available under section 35 of the Financial Management Act 1994 are not
brought to account in this Bill. They are tabled in the Parliament as part of
the Financial Report for the State of Victoria 2006/2007 and formally
brought to account in the Appropriation (2008/2009) Bill. Advances relating
to 2005/2006 which were published in the Financial Report for the State of
Victoria 2005/2006, are brought to account in clauses 7 and 8 of, and
Schedules 2 and 3 to, this Bill.
To enable comparison of the appropriations between years, Schedule 1 to the
Bill contains both the 2006/2007 and 2007/2008 appropriated amounts.
Because of machinery of government changes in 2006/2007 the original
budget amount for certain departments was adjusted to take account of a full
year effect. The following Table gives a summary of the adjustments.
2006/2007
Original 2006/2007
Department Estimate Adjustment Budget
$'000 $'000 $'000
Education 6 936 902 -942 634 5 994 268
Human Services 8 819 908 -5 386 8 814 522
Infrastructure 3 802 419 -71 909 3 730 510
Innovation, Industry
and Regional
Development 437 701 937 539 1 375 240
Justice 2 896 444 4 861 2 901 305
Premier and Cabinet 475 315 -23 512 451 803
Primary Industries 417 706 74 279 491 985
Sustainability and
Environment 886 799 25 886 824
Treasury and Finance 1 738 953 39 016 1 777 969
Victorian Communities 362 615 -12 279 350 336
26 774 762 26 774 762
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Clause Notes
The Bill is comprised of 8 clauses as follows:
Clause 1 defines the purpose of the Bill.
Clause 2 specifies that the Act comes into operation on the day it receives
Royal Assent.
Clause 3 provides that the Treasurer may issue the stated amount out of the
Consolidated Fund in respect of the financial year 2007/2008 for
the purposes set out in Schedule 1 to the Bill. Subclauses (2) and
(3) provide authority for additional appropriation if necessary for
increases in salaries and related costs that may be the result of
determinations or legislation during the year.
Clause 4 provides that the Consolidated Fund is appropriated to the extent
necessary for the purposes included in clause 3.
Clause 5 provides that the amounts specified for an item in Schedule 1 are
to be applied subject to section 30 of the Financial Management
Act 1994 and on the basis that the amounts specified for that item
are not exceeded.
The clause also states that if depreciation is included in the
provision of outputs of a department in Schedule 1 to the Bill,
then the additions to the net asset base of that department may be
increased, subject to the Treasurer's approval, by an amount up to
the depreciation amount.
Clause 6 provides for the application of amounts in 2007/2008 for
arrangements, expenses or obligations that arise in 2007/2008
but do not require payment until a future year.
Clause 7 provides appropriation authority for additional funding approved
by the Treasurer during 2005/2006 pursuant to the provisions of
section 35 of the Financial Management Act 1994 as detailed in
Schedule 2.
Clause 8 provides appropriation authority for additional funding approved
by the Treasurer during 2005/2006 from funds appropriated for
Advance to the Treasurer under the Department of Treasury and
Finance. Details are contained in Schedule 3.
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