Australian Capital Territory Numbered Acts Australian Capital Territory Numbered Actssubstitute
11 Territory budgets
(1) The proposed budget for the Territory for a financial year presented to the Legislative Assembly under section 10 (a) must include—
(a) a financial policy objectives and strategies statement under section 11A for the financial year; and
(b) a statement of the economic or other assumptions used to make the budget estimates; and
(c) a statement about the sensitivity of the budget estimates to changes in the economic or other assumptions; and
(d) a statement of the risks, quantified if possible, that may affect the budget estimates, including contingent liabilities; and
(e) the financial statements required under the financial management guidelines.
(2) The proposed budget must be prepared in a form that assists a comparison, for each appropriation unit, between the budget for the Territory for the previous financial year and the proposed budget.
(3) The financial statements included in the proposed budget under subsection (1) (e) must include budget estimates, for each appropriation unit, for each of the next 3 financial years; and
(4) The proposed budget must be prepared taking into account—
(a) the principles of responsible fiscal management;
(b) the object of providing a basis for sustainable social and economic services and infrastructure fairly to all ACT residents; and
(c) the object of ecologically sustainable development.
(5) The proposed budget may depart from the principles of responsible fiscal management, but if it does so—
(a) any departure must be temporary; and
(b) the Treasurer must present to the Legislative Assembly, when the first Appropriation Bill for the financial year is presented to the Legislative Assembly, a statement setting out—
(i) the reasons for the departure; and
(ii) the approach intended to be taken to return to the principles; and
(iii) when the principles are expected to be returned to.
(6) In this section:
"ecologically sustainable development "means the effective integration of economic and environmental considerations in decision-making processes achievable through implementation of the following principles:
(a) the precautionary principle;
(b) the inter-generational equity principle;
(c) conservation of biological diversity and ecological integrity;
(d) improved valuation and pricing of environmental resources.
fiscal risks include the following:
(a) risks from the level of the Territory's general government sector debt;
(b) commercial risks from ownership of corporations and public enterprises;
(c) risks from changes in the structure of the Territory's tax base;
(d) risks from management of the Territory's assets and liabilities.
"inter-generational equity principle "means that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations.
"precautionary principle "means that, if there is a threat of serious or irreversible environmental damage, a lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.
"principles of responsible fiscal management "means the following principles:
(a) ensuring that the total liabilities of the Territory are at prudent levels to provide a buffer against factors that may impact adversely on the level of total Territory liabilities in the future, and ensuring that, until prudent levels have been achieved, the total operating expenses of the Territory in each financial year are less than its operating revenue levels in the same financial year;
(b) when prudent levels of total Territory liabilities have been achieved, maintaining the levels by ensuring that, on average, over a reasonable period of time, the total operating expenses of the Territory do not exceed its operating revenue levels;
(c) achieving and maintaining levels of Territory net worth to provide a buffer against factors that may impact adversely on levels of Territory net worth in the future;
(d) managing prudently the fiscal risks of the Territory;
(e) pursuing spending and taxing policies that are consistent with a reasonable degree of stability and predictability in the level of the tax burden;
(f) giving full, accurate and timely disclosure of financial information about the activities of the government and its agencies.
11A Financial policy objectives and strategies statement
(1) The purposes of a financial policy objectives and strategies statement included in a proposed budget under section 11 (1) (a) are—
(a) to make transparent the government's financial strategies; and
(b) to establish a benchmark for evaluating the government's conduct of financial policy.
(2) The statement must be based on the principles of responsible fiscal management.
(3) The statement must—
(a) state the government's long-term financial objectives within which financial policy for the financial year and the next 3 financial years will be framed; and
(b) explain the broad strategic priorities on which the budget is based; and
(c) state the key financial measures that the government has identified as being important and against which financial policy will be set and assessed; and
(d) state, for the financial year and the next 3 financial years—
(i) the government's short-term financial objectives; and
(ii) the targets for each stated key financial measure; and
(e) explain how the financial objectives and strategic priorities mentioned in paragraphs (a), (b) and (d) relate to the principles of responsible fiscal management; and
(f) state the reasons for any changes from the previous financial policy objectives and strategies statement.
(4) In this section:
"principles of responsible fiscal management"—see section 11 (6).