1996-1997
Glossary of Technical Terms
The 1996-97 Portfolio Budget Statements, informs Senators and Members of Parliament of the proposed allocation of resources to portfolios outcomes and their objectives and targets including the agencies within the Health and Family Services portfolio.
Additional estimates - where amounts appropriated at Budget time (Appropriation Acts 1 and 2) are insufficient, Parliament may appropriate more funds to portfolios through Appropriation Acts 3 and 4. This is the Additional Estimates process.
Appropriation - an authorisation by Parliament to spend moneys from the Consolidated Revenue Fund.
Annotated appropriation - Annotated Appropriations are a form of appropriation which allow a department access to moneys it earns. These moneys are known as Section 35 receipts, after section 35 of the Audit Act 1901.
Annual Appropriation - Two appropriation bills are introduced into Parliament in August and comprise the Budget. Two further bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.
Special appropriations - Moneys appropriated by Parliament in an Act separate to an annual Appropriation Act.
Budget measure - a decision by the Cabinet or Ministers that has been finalised since the 1995-96 Budget and has resulted in a cost or saving to outlays in the years 1996-97 to 1999-2000.
Budget outcome - (Revenues - Outlays) = the Budget Headline outcome (surplus or deficit)
Commonwealth funds
Consolidated Revenue Fund - This is the principal working fund of the Commonwealth and is mainly financed by taxation, fees and other current receipts. The Constitution requires an appropriation of moneys by the Parliament before any expenditure can be made from the CRF.
Loan Fund - Established by the Audit Act 1901, the Loan Fund contains all moneys raised by loan on the public credit of the Commonwealth. Expenditure from the Loan Fund is limited to the purpose for which the moneys were raised.
Trust Fund - Also established by the Audit Act 1901, the Trust Fund comprises "trustee funds", the "working accounts" of certain government agencies and other funds.
Efficiency dividend - An annual deduction of a percentage of running costs from an agency's budget which acts both as an incentive to efficiency and a quantification of some of the efficiency gains made by an agency in the previous year.
Financing transactions - The Government funds shortfalls in revenue over outlays by borrowing from financial markets or running down financial assets. Such activities are regarded as financing transactions. If a surplus of revenue over outlays is recorded then financing transactions will show how the surplus is used.
Forward estimates - a system of rolling three year financial estimates. After the budget is passed, the first year of the forward estimates becomes the base for the next year's budget bid, and another outyear is added to the forward estimates.
Outlays - In the budget context, outlays measure the economic activity of government. In particular, it measures the net cost of providing government goods and services. Payments from the Consolidated Revenue Fund (appropriations) are adjusted to drive outlays. These adjustments include:
- payments not regarded as outlays (for example loan repayments and tax refunds);
- receipts that are offset within outlays - these are charges for goods and services, sales of physical assets and repayments of governments loans or repayment of equity in government enterprises;
- trust fund transactions regarded as outlays.
Top of page
Receipts - The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and GBE dividents received.
Revenue - the main way the government funds its outlays. It is mainly tax receipts, fees for regulatory servces performed by government and interest and divendends received. Tax refunds are correcting transactions and are regarded as offsets within revenue.
Running costs - The full current and minor capital costs consumed by an agency in providing government services for which the agency is responsible.
Section 35 receipts - see annotated appropriation
Trust account - An account held under the Trust Fund.
