Explanatory Statement
Appropriation Act (No. 2) 2005-06, Section 13 – Advance to the Finance Minister
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Advance to the Finance Minister – Section 13 of Appropriation Act (No. 2) 2005-2006”, dated 24 March 2006 and numbered 8 of 2005-2006.
The legislative authority under which the instrument is made
The Advance to the Finance Minister is a provision authorised by the annual Appropriation Acts and made available to the Finance Minister as a central contingency fund to provide urgent funding to agencies throughout the financial year.
In Appropriation Act (No. 2) 2005-06, the Advance to the Finance Minister is provided for under section 13. This section indicates that amounts can be issued from the Advance to the Finance Minister, up to a limit of $215 million, if the Finance Minister is satisfied that:
(a) There is an urgent need for expenditure that is not provided for, or is insufficiently provided for, in Schedule 2 (which sets out the amounts appropriated); and
(b) The additional expenditure is not provided for, or is insufficiently provided for, in Schedule 2:
(i) Because of an erroneous omission or understatement; or
(ii) Because the additional expenditure was unforeseen until after the last day on which it was practicable to provide for it in the Appropriation Bill before the Bill was introduced into the House of Representatives.
Exercise of the provision via the issue of a determination, has effect as if Schedule 2 of Appropriation Act (No. 2) 2005-06 were amended to make provision for the additional expenditure specified in the determination.
In an instrument dated 12 February 2003, the Finance Minister has authorised the person holding the position of SES Band 2, Financial Reporting and Cash Management Division, in the Department of Finance and Administration to exercise the power provided for under section 13 of Appropriation Act (No. 2) 2005-06.
Purpose of the instrument
The instrument determines that the Administered Expenses, Specific Purpose Payments, Outcome 1 appropriation for the Department of Agriculture, Fisheries and Forestry in Appropriation Act (No. 2) 2005-06 be increased by $49,926,377.
Background
The background to the instrument is provided in the application made by the Department of Agriculture, Fisheries and Forestry for funding from the Advance to the Finance Minister. The application is reproduced below.
APPLICATION FOR FUNDS - ADVANCE TO THE FINANCE MINISTER 2005-2006
Agency: Australian Government Department of Agriculture, Fisheries and Forestry
Appropriation: Appropriation Act (No. 2) 2005-06
Description: Administered expenses – Specific Purpose Payments - Outcome 1
Description of Outcome: More sustainable, competitive and profitable Australian agricultural, food, fisheries and forestry industries
Source of Available Funds | 2003-2004 | 2004-2005 | 2005-2006 |
$ | $ | $ | |
|
|
| |
Appropriation Bill No. 2 | 338,322,000 | 464,986,000 | 309,807,000 |
Appropriation Bill No. 4 | 187,216,000 | (47,072,000) | - |
Appropriation Bill No. 6 | - | (27,475,000) | - |
TOTAL FUNDS AVAILABLE | 525,538,000 | 390,439,000 | 309,807,000 |
|
|
|
|
TOTAL EXPENDITURE | 276,168,172 | 326,084,157 | 303,533,459 |
|
|
|
|
TOTAL UNSPENT FUNDS | 249,369,828 | 64,354,843 | 6,273,541 |
Funds Required: $56,199,918
Funds Currently Unspent: $6,273,541
Amount required from AFM: $49,926,377
AFM Category: Appropriation Act (No. 2) 2005-2006 Part 3 13 (1)(b)(ii)
Explanation of requirements from AFM:
The Department of Agriculture, Fisheries and Forestry requires funds from the Advance to the Finance Minister to allow payment of funds to States for a variety of items under Appropriation Bill No. 2. A large amount of funds have been expended in providing for exceptional circumstances areas which have been declared or extended since the 2005-06 Budget (with this programme presently $135.241 million over the original budget). Funds for the approved extensions and declarations are to be provided in the Additional Estimates through Appropriation Bill. No.4. but a number of payments are due to be paid before the passage of the Bills.
Additional payments are also required to be made in the coming weeks for a number of other programs under this appropriation including the Citrus Canker Eradication Programme, the National Action Plan for Salinity and Water Quality and the Great Artesian Basin Sustainability Initiative.
Urgent:
Payments are either due now or will become due for all of these programmes before the anticipated passage of the Additional Estimates Bills in April 2006. The majority of these payments are for reimbursement of States for expenditure already incurred on behalf of the Commonwealth.
Erroneous Omission or Unforeseen :
All exceptional circumstances areas which had been approved at the time of the Budget were included in Appropriation Bill No.2. Since that time many additional areas and extensions have been approved with $304.341 million in additional exceptional circumstances funding to be provided in the total funding of $334.137 million due to the Department with the passage of Appropriation Bill No. 4.
Notes on the instrument
The instrument provides that the appropriation item listed in column 1 for the Department of Agriculture, Fisheries and Forestry be increased by the amount listed in column 3. The instrument specifies that the additional amount is provided for the purpose of meeting payments of funds to states, for Exceptional Circumstances Assistance, Citrus Canker Eradication Programme, the National Action Plan for Salinity and Water Quality, and the Great Artesian Basin Sustainability Initiative.