Overview

The Health and Hospitals Fund General Drawing Rights Limit Declaration 2009 was enacted as a legislative instrument under the Nation-building Funds Act 2008 to provide a financial framework for the Health and Hospitals Fund (HHF) for the financial year ending on 30 June 2009. This legislation was introduced in response to the need for effective management of public funds amidst the global financial crisis, as announced by the Government on 14 October 2008, aiming to fast track its nation-building agenda. The Act specifies the general drawing rights limit for the HHF, setting a cap on the amount that can be covered by drawing rights issued by the Minister for Finance and Deregulation for health infrastructure development purposes. This limit is crucial for controlling public expenditure and ensuring that payments are made within authorised boundaries. The enactment and declaration were authorised by the Minister for Finance and Deregulation, and the declaration itself is a legislative instrument that is not disallowable, as outlined in subsection 267(3) of the Funds Act. It was required to be tabled in the Parliament and published on the Federal Register of Legislative Instruments, ensuring transparency and compliance with legislative procedures. The general drawing rights limit for subsequent financial years are detailed in the Appropriation Acts, reflecting the ongoing commitment to manage and allocate funds prudently in support of the nation-building initiatives.

Scope and Application

The Health and Hospitals Fund General Drawing Rights Limit Declaration 2009 applies to the Health and Hospitals Fund (HHF) established under the Nation-building Funds Act 2008. Specifically, it sets the general drawing rights limit for the HHF for the financial year ending on 30 June 2009, with the main purpose of managing payments related to the creation or development of health infrastructure. This Declaration sets a maximum limit on the amount that may be covered by drawing rights issued by the Minister for Finance and Deregulation under the Financial Management and Accountability Act 1997 for the specified financial year. The Declaration is not subject to disallowance and is tabled in Parliament and published on the Federal Register of Legislative Instruments. The limit specified is for the financial year in question and does not affect any other year's limits, which are detailed in Appropriation Acts. The Declaration is an effective mechanism to manage public expenditure by ensuring that payments are authorised within the set limit.

Key Provisions

The primary operative sections of the Health and Hospitals Fund General Drawing Rights Limit Declaration 2009 (the Declaration) pertain to section 267 of the Nation-building Funds Act 2008 (Funds Act). This section allows the Minister for Finance and Deregulation to declare the general drawing rights limit for the Health and Hospitals Fund (HHF) for a specific financial year. For the 2009-10 financial year, the Declaration specifies the general drawing rights limit for the HHF, which is the maximum amount that can be covered by drawing rights issued under the Financial Management and Accountability Act 1997 (FMA Act). This limit is intended to control expenditure by restricting the ability of officials or Ministers to make payments without a valid drawing right. The Declaration imposes specific obligations and requirements on the Minister for Finance and Deregulation. It mandates that the Minister declare the general drawing rights limit for the HHF for the financial year ending on 30 June 2009 in writing, as enabled by paragraph 267(1)(a) of the Funds Act. Moreover, the Declaration, being a legislative instrument, must be tabled in the Parliament and published on the Federal Register of Legislative Instruments, as required by subsection 267(3) of the Funds Act. This ensures transparency and accountability in the management of public funds. Breaching the obligations set out in the Declaration, such as exceeding the specified general drawing rights limit, may not directly result in specific offences or penalties under the Declaration itself. However, making payments without a valid drawing right under the FMA Act would be unlawful. The FMA Act provides for civil and criminal penalties for breaches of its provisions, which could include fines and imprisonment. The exact penalties would depend on the specific circumstances and the relevant provisions of the FMA Act.