Advance to the Finance Minister – section 11 of Appropriation Act (No. 2) 2001-2002 (No. 4 of 2001-2002)

Overview

The legislative instrument F2007B00850, titled "Advance to the Finance Minister – Section 11 of Appropriation Act (No.2) 2001-2002," was enacted in 2001 to address the need for additional appropriations to meet certain financial obligations that were not initially anticipated or were insufficiently funded in the original budget allocation. The enacting body was the Australian Parliament, which authorised these appropriations through the relevant appropriation act. The policy objective was to ensure that critical government spending and taxation arrangements could proceed effectively, particularly in relation to specific payments to the states and territories, without interruption. This legislative instrument empowered the Finance Minister, through Section 11 of the Appropriation Act (No.2) 2001-2002, to increase the appropriation item for the Department of the Treasury by $49,537,432 pending the presentation of Additional Estimates. This measure aimed to facilitate smooth financial operations and avoid potential disruptions in government services and payments to states and territories.

Scope and Application

Section 11 of the Appropriation Act (No. 2) 2001-2002, as exercised by James Kerwin, Manager, Budget Group, Department of Finance and Administration, provides the authority to adjust appropriation items pending the submission of Additional Estimates. This legislative instrument pertains specifically to the Department of the Treasury and concerns an appropriation item related to specific payments to the States and Territories under Outcome 2, which aims to ensure effective government spending and taxation arrangements. The appropriation item in question has been increased by $49,537,432. This adjustment is temporary and is subject to the approval of the Finance Minister once the Additional Estimates are presented. The scope of this legislative instrument is confined to the Commonwealth level and applies directly to the financial allocations within the Department of the Treasury, ensuring that the revised appropriations align with the financial needs of the government for the specified period.

Key Provisions

Section 11 of the Appropriation Act (No. 2) 2001-2002 provides the authority for the Finance Minister to adjust appropriations pending the presentation of Additional Estimates. In this case, James Kerwin, as Manager of the Budget Group in the Department of Finance and Administration, has exercised this power to increase the appropriation item for the Department of the Treasury by $49,537,432, as shown in Column 3 of the document. This adjustment is specific to the appropriation for "Specific payments to the States and Territories" under Outcome 2, which pertains to "Effective government spending and taxation arrangements" (Section 11(1)). Under this legislation, the primary obligation imposed on James Kerwin and his department is to ensure that the financial adjustments are made accurately and in accordance with the specified appropriation item and agency. The determination of the increased appropriation must be meticulously documented, as evidenced by the details provided in the table within the legislative instrument. This includes specifying the appropriation item, the agency to which the funds are allocated, and the exact amount of the increase (Section 11(2)). Furthermore, the action taken must be in anticipation of the Additional Estimates, which are expected to provide a more comprehensive financial framework for the fiscal year (Section 11(3)). In terms of potential consequences for non-compliance or improper use of this authority, the legislation does not explicitly detail specific offences, penalties, or consequences for breaches. However, any misuse or misapplication of funds resulting from improper execution of this appropriation adjustment could lead to significant financial mismanagement and accountability issues. Such issues could result in internal departmental scrutiny, financial audits, or even legal action if the improper use of funds leads to substantial financial discrepancies or loss (Section 11(4)). The seriousness of these consequences underscores the importance of adhering to the precise mandates outlined in the Act.