Attachment C
SUPPLEMENTARY EXPENSE TABLE AND THE CONTINGENCY RESERVE
Expenses
Table 3.20 shows estimates of Australian Government general government expenses
by function and sub-function for 2009-10 and the forward years.
65
General public services
Legislative and executive affairs
Financial and fiscal affairs
Foreign affairs and economic aid
General research
General services
Government superannuation
benefits
Defence
Public order and safety
Education
Health
Social security and welfare
Housing and community amenities
Recreation and culture
Fuel and energy
Agriculture, fisheries and forestry
Mining, manufacturing and
construction
Transport and communication
Other economic affairs
Tourism and area promotion
Labour and employment affairs
Immigration
Other economic affairs nec
895
5,788
4,901
2,589
679
3,095
20,740
3,818
35,231
52,355
110,195
9,129
3,094
8,467
3,597
1,692
5,805
169
5,033
1,531
2,304
3,051
20,952
3,901
35,222
51,223
110,994
9,089
3,099
8,403
3,407
1,681
5,482
169
4,307
1,495
2,212
MYEFO
$m
874
5,685
4,909
2,566
670
Budget
$m
2009-10
66
0
17
2
4
6
1
1
-1
-2
0
2
-1
0
0
1
6
2
2
0
1
1
Change
on
Budget
%
168
4,334
1,399
2,093
5,637
1,962
3,153
20,021
3,781
32,087
53,201
116,503
5,571
3,000
7,899
2,791
1,020
5,999
5,366
2,561
638
Budget
$m
Estimates
168
4,747
1,391
2,117
5,638
1,962
3,270
19,747
3,680
32,736
53,933
115,597
5,147
2,988
7,694
2,874
961
6,134
5,434
2,572
638
MYEFO
$m
2010-11
0
10
-1
1
0
0
4
-1
-3
2
1
-1
-8
0
-3
3
-6
2
1
0
0
Change
on
Budget
%
166
4,096
1,420
2,172
6,686
1,947
3,211
20,101
3,759
28,630
55,619
120,574
4,266
2,938
7,044
2,852
891
6,541
5,726
2,595
634
Budget
$m
166
4,483
1,407
2,238
6,687
1,820
3,324
19,846
3,642
28,385
56,611
119,584
4,124
2,890
6,849
2,939
889
6,651
5,814
2,609
631
MYEFO
$m
2011-12
0
9
-1
3
0
-7
4
-1
-3
-1
2
-1
-3
-2
-3
3
0
2
2
1
0
Change
on
Budget
%
169
3,696
1,438
2,146
6,826
1,906
3,225
19,885
3,861
29,878
57,628
123,957
4,005
2,944
6,454
2,915
914
6,627
6,373
2,512
630
Budget
$m
Projections
Table 3.20: Estimates of Australian Government general government expenses by function and sub-function
169
4,106
1,428
2,279
6,829
1,755
3,382
19,685
3,745
29,610
59,482
123,872
3,927
2,877
5,260
2,954
914
6,783
6,505
2,518
626
0
11
-1
6
0
-8
5
-1
-3
-1
3
0
-2
-2
-19
1
0
2
2
0
-1
Change
on
MYEFO Budget
$m
%
2012-13
Part 3: Fiscal strategy and outlook
340,166
44,701
145
508
44,086
91
1,589
338,213
6,912
6,792
6,264
6,792
MYEFO
$m
1
1
59
-68
10
0
Change
on
Budget
%
344,528
46,404
91
3,493
8,340
7,016
Budget
$m
Estimates
344,980
48,042
94
659
9,743
7,016
MYEFO
$m
2010-11
49,288
91
7,235
356,388
0
10,659
7,245
Budget
$m
4
3
-81
17
0
Change
on
Budget
%
(a) Asset sale related expenses are treated as a component of the Contingency Reserve sub-function.
Total expenses
Other purposes
Public debt interest
Nominal superannuation interest
General purpose inter-government
transactions
Natural disaster relief
Contingency reserve(a)
Budget
$m
2009-10
Table 3.20: Australian Government expenses by function and sub-function (continued)
358,505
50,788
94
6,422
12,365
7,245
MYEFO
$m
2011-12
1
3
3
-11
16
0
Change
on
Budget
%
374,990
52,329
101
14,591
12,493
7,489
Budget
$m
Projections
378,075
53,885
103
14,065
13,825
7,489
1
3
2
-4
11
0
Change
on
MYEFO Budget
$m
%
2012-13
Part 3: Fiscal strategy and outlook
67
Part 3: Fiscal strategy and outlook
Contingency Reserve
The Contingency Reserve (other purposes function) is an allowance, included in
aggregate expenses, principally to reflect anticipated events that cannot be assigned to
individual programs in the preparation of the Australian Government budget
estimates. The Reserve is used to ensure that the budget estimates are based on the
best information available at the time of the Mid-Year Economic and Fiscal Outlook
(MYEFO). It is not a general policy reserve.
The Reserve ensures that aggregate estimates are as close as possible to expected
outcomes, but it is not appropriated. Allowances that are included in the Reserve can
only be drawn upon once they have been appropriated by Parliament. These
allowances are removed from the Reserve and allocated to specific agencies for
appropriation and for outcome reporting closer to the time when the associated events
eventuate.
The Contingency Reserve makes allowance in 2009-10 and the forward years for
anticipated events, including the following:
• an allowance for the tendency for estimates of expenses for existing Government
policy to be revised upwards in the forward years, known as the conservative bias
allowance. An examination of expenses estimates indicates that the tendency for
expenses to be revised upwards, after taking account of policy measures and formal
economic parameter variations, has reduced in recent years. Following a review
prior to the 2009-10 Budget, at MYEFO this allowance has been set at 1½ per cent of
total general government sector expenses (excluding GST payments to the States) in
the third year of the forward estimates period (2012-13), ¾ per cent in the second
year (2011-12), and ¼ per cent in the first forward year (2010-11). This involves a
reduction of expenses of $759 million in 2010-11, $793 million in 2011-12 and
$1.5 billion in 2012-13;
• a provision for underspends in the current financial year reflecting the tendency for
budgeted expenses for some agencies or functions not to be met;
• commercial-in-confidence and national security-in-confidence items that cannot be
disclosed separately and programs that are yet to be negotiated with State and
Territory governments;
• provisions for events that are reasonably expected to affect the budget estimates-for
example, a provision for the continuation of drought relief in 2009-10 and 2010-11;
• decisions made too late for inclusion against individual agency estimates; and
• the effect on the budget and forward estimates of economic parameters revisions
received late in the process and hence not able to be allocated to individual agencies
or functions.
68
Part 3: Fiscal strategy and outlook
The Contingency Reserve also makes the provision for future increases in Australia’s
official development assistance yet to be allocated to specific aid programs. However,
in this attachment, those expenses are allocated to the Foreign Affairs function.
The Contingency Reserve also includes provisions for future equity investments in the
National Broadband Network. This is subject to the outcome of the implementation
plan and subsequent commercial negotiations and, accordingly, is not disclosed.
69