Bills Digest No. 155 2001-02
Appropriation Bill (No.2) 2002-2003
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Passage History
Appropriation Bill (No.2)
2002-2003
Date Introduced: 14
May 2002
House: House
of Representatives
Portfolio: Finance
and Administration
Commencement: Royal
Assent
To appropriate $6 120 821 000 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.
The $6 120 821 000 appropriated by this Bill compares
to $4 524 716 000 in 2001-02 and $5 128 526 000
in 2000-01. A concise assessment of the 2002-03 Budget can be found in
a forthcoming Parliamentary Library publication Implications: Budget
2002-03. An overview of the process and context of appropriation bills
can be found in another Library publication The Commonwealth Budget:
Process and Presentation.(1)
Under section 83 of the Constitution, no monies may be drawn from Treasury
except 'under an appropriation made by law'. Appropriation Bill (No. 1)
2002-03, together with the Appropriation Bill (No.2) 2002-03 and the Appropriation
(Parliamentary Departments) 2002-03, are introduced in May each year for
the annual appropriations of Government. Where additional funds are needed
later in the year it is common for further Appropriation Bills to be introduced
and these are known as the additional estimates. Historically, annual
appropriations comprise approximately 25 per cent of agency expenses.
The remaining 75 per cent comes from special or standing appropriations
and income receipts.
Appropriation Bill (No. 1) provides for the appropriation of money from
the Consolidated Revenue Fund for the ordinary annual services of government.
Appropriation Bill (No. 2) provides for the appropriation of money for
purposes other than the ordinary services of government (for example,
departmental capital, administered expenses for new agency outcomes, and
grants to the States and Territories). The division of items between the
Bills accords with the 1965 'compact' between the House of Representatives
and the Senate.(2)
Details on the major new expenditure initiatives announced in the Budget
are contained in the Digest for the Appropriation Bill (No.1) 2002-03.
Significant expenditure measures are indicated below.
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Measure
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2002-03
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5 years
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- Equity injection to the Defence Department: the equity
injection increased from the previous 2002-03 estimate by $207.8m
as a result of the contribution to the War Against Terrorism and
the measures associated with coastal surveillance and upgrades
to domestic security. They were partly funded by delaying capital
purchases from 2002-03 to 2003-04.(3)
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$1,090.4m
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$5,093m
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- Administered expenses by Department of Family and Community
Services: the amounts include $1,028.2m to the States and
Territories for the Commonwealth State Housing Agreement.(4)
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$1,951.9m
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n/a
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The total amount appropriated by the Bill is $6 120 821 000
(clause 6).
Schedule 1 contains appropriations for the States
and Territories.
In relation to State payment items, the Minister for
Finance may issue the lesser of:
- the amount specified Schedule 1; and
- an amount, as he or she determines, having regard to the relevant
expenses incurred by the entity in the current financial year (clause
7).
In
relation to administered items, the same basic provisions apply (clause
8).
In relation to 'other departmental items', the Minister must issue:
- the amount specified in Schedule 1, where an entity
has a direct statutory entitlement to its own appropriation; or
- any lesser amounts to that specified in Schedule 1,
where an entity does not have a direct statutory entitlement to its
own appropriation (clause 10)
The Minister for Finance may increase the amounts specified in departmental
items up to a maximum of $20 million over all departmental items (clause
10). However, where there are unforeseen circumstances and the need
is urgent, the Minister for Finance may increase expenditure by a total
of $215 million (clause 11). Parliament must be notified of increased
spending under clauses 10 and 11.
The relevant Minister listed in column 4 of Schedule 1 will be able to
determine conditions under which payments to the States and Territories
can be made (clause 14).
Clause 15 formally appropriates funds for the Bill from the Consolidated
Revenue Fund.
Endnotes
- Richard Webb, The Commonwealth Budget: Process and Presentation, Research
Paper No.10 2002-03, 19 March 2002.
- Webb, op. cit., p. 16.
- Department of Defence, Portfolio
Budget Statements 2002-03, p. 72.
- Department of Family and Community Services, Portfolio
Budget Statements 2002-03, p. 96.
Nathan Hancock
27 May 2002
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2002
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Published by the Department of the Parliamentary Library, 2002.
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