Page 3329 - Week 11 - Tuesday, 12 October 1993
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MS FOLLETT (Chief Minister and Treasurer) (4.14): I do agree with Mr Kaine that there are advantages in bringing down the budget much earlier than has been the case, and I agree with Mr Kaine that presenting the budget before the end of the financial year is desirable, rather than, as is the case now, well after the end of the financial year. But, like the other States and the Northern Territory, the ACT is dependent for a large part of its funding on the Commonwealth; hence we are dependent in many ways on the timing of the Commonwealth's financial decision making. Up until this point in time I do not believe that it has been possible for a State or Territory to bring down a budget substantially in advance of the Federal Government's budget. The Commonwealth Treasurer, in his budget speech for 1993-94, indicated the Commonwealth's intention to bring down the next budget before the end of June. He said that that was to enable decision makers to plan for a full financial year and to be fully informed of the details of government policy. Madam Speaker, at the moment we do not have the precise timing of the Federal Government's budget for the next year. I believe, however, that the indicative dates are somewhere between April and June, and that the month of May is probably the most likely.
In looking at our own budget situation, there are some events which must occur before the ACT can bring down a budget. The key event, of course, is the Premiers Conference. At the Premiers Conference the Territory gets its general revenue grant, which is by far our largest source of revenue, and it is quite crucial to our own territorial budgeting that we know the size of that grant. Before the Premiers Conference each year there usually occurs an update of the Grants Commission's relativities, so that date also would have to be brought forward. I believe, although it is certainly not confirmed, that the Grants Commission's update may occur in late February and therefore allow a Premiers Conference much earlier than is usually scheduled as well, and therefore the Federal Government's budget would also be earlier.
Madam Speaker, the ACT Government is indeed sympathetic to the idea of presenting a budget prior to the start of the financial year. It is an issue that has been around for a number of years, as Mr Kaine pointed out, and I have been considering the practicalities of such a move ever since the Federal Treasurer made that announcement in bringing down his own budget. I think that a sound knowledge and understanding of the budget and the details of government policies will also assist program managers to implement programs early in the financial year, and this will ensure the early delivery of appropriate services to the community in accordance with the Government's policies. I think also, as Mr Kaine pointed out, that an earlier budget would have the effect of bringing forward revenue measures. At the same time I think it is very important that they would be put more into the context of the Government's overall strategy. You would have the revenue measures and the expenditure measures on the table at the same time, rather than, as at present, having the revenue measures brought in well in advance of the rest of the budget. I think that a greater cohesion in the budget would also be achieved by bringing it on earlier.
As I said, it would give much greater certainty to agencies in pursuing their programs. I think at the moment it is extremely difficult, when the financial year is the best part of half over by the time the Appropriation Bill is passed. That seems to me to indicate some uncertainty. You cannot really be confident of starting new programs until that Appropriation Bill is passed. There would also be a reduction in the supply period if the budget were brought on earlier.
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