Explanatory Statement
Appropriation Act (No. 4) 2003-2004, Section 12 – Reduction of Appropriations Upon Request
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriation Upon Request”, dated 7 June 2006 and numbered 7 of 2005-2006.
The legislative authority under which the instrument is made
Section 12 of Appropriation Act (No.4) 2003-2004 enables the Finance Minister to make a determination reducing non-operating appropriations in that Act, upon receipt of a written request from the Minister responsible or, in the case of an agency in the Finance portfolio, the Chief Executive.
The provision was included in Appropriation Act (No. 4) 2003-04 to enable excess non-operating appropriation items, which do not automatically lapse, to be extinguished. Excess appropriation may arise where, for example:
- An amount is reclassified and appropriated again under another kind of appropriation;
- Efficiency savings result in a programme costing less than expected; and
- A programme under Government policy is abolished prior to the appropriation being expensed.
A determination issued by the Finance Minister pursuant to section 12 of Appropriation Act (No.4) 2003-2004 cannot reduce an appropriation item by more than the lesser of the amount requested by the responsible Minister or Chief Executive (as appropriate), and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument directs that carryover from previous years equity injections from the Office of the Inspector-General of Intelligence and Security in Appropriation Act (No. 2) 2000-2001 be reduced by $66,000.
Background
On 21 March 2006, the Inspector General of Intelligence and Security, wrote to the Minister for Finance and Administration seeking a reduction of the Office of the Inspector-General of Intelligence and Security’s equity injections – Carryover from previous years in Appropriation Act (No. 2) 2000-2001 by $66,000. This amount relates to an error in the classification of the 2000-2001 appropriation.
Notes on the instrument
The instrument provides that the appropriation items in column 1 for the agency in column 2 be reduced in response to a request made by the officer in column 4 by the amounts listed in column 6.