About this Budget Paper
Purpose and Scope
Budget Paper No. 3 Budget Estimates illustrates the financial and service delivery performance of
general government agencies. The objectives of this paper are to:

support and explain appropriations from the Consolidated Fund

meet the requirement under s. 27AA (2)(c) of the Public Finance and Audit Act 1983 to provide
‘information about the results and services and total expenses of each service group’

support transparency and accountability by reporting on planned performance from the
previous Budget, and explaining how resources have been allocated in the current Budget.
The general government sector represents the scope of the Budget. As such, this Budget Paper
only includes agencies within that sector. Budget Paper No. 2, Budget Statement, includes an
overview of agency classifications by sector and a glossary.
Program Budgeting and Performance Reporting
The Results and Services framework applied for Budget Papers in previous years enabled
agencies to identify their expected results across intermediate and lower-level service delivery
measures. A review of this framework, however, found there was little direct mapping between
these measures and the results and services. It was therefore not possible to determine how
particular funding commitments helped deliver services and achieve results.
To increase the quality, accountability and transparency of performance information, Budget
Paper No. 3 will move to a program-based budgeting structure.
What changes have been made for 2012-13?
The transition to program-based budgeting will occur across a number of Budget cycles. The
program-based budgeting framework will also be integrated into NSW 2021.
Budget Paper No. 3 for 2012-13 accordingly covers agency service and financial performance,
but not result indicators. A Budget-related paper, the NSW 2021 Performance Report, reports on the
progress of clusters in implementing the measures and meeting the goals and targets of NSW
2021 and other result indicators.
Specific agency performance information will continue to be available from other sources such as
agency websites, annual reports and the Productivity Commission’s Report on Government Services.
Budget Estimates 2012-13
i
About this Budget Paper
What will happen next?
Treasury will develop and implement a program-based budgeting and performance reporting
framework. The associated performance measures reported against in future Budget Papers will
reflect this.
NSW 2021 progress will continue to be reported separately, and opportunities to integrate
performance measures will be sought where appropriate.
Cluster and Appropriation Arrangements
NSW Government agencies were restructured in April 2011. This included grouping agencies
into nine clusters.
Clusters are groups of strategically aligned entities, but a cluster is not a legal or reporting entity.
Individual agencies are separate legal entities that must prepare financial and annual reports.
The cluster arrangement aims to improve government services and outcomes for the community
by:

pursuing common objectives across agencies

better integrating services

helping to allocate resources to high-priority areas.
In the 2011-12 Budget, the Government implemented a new approach to appropriations.
Coordinating Ministers for each cluster receive an appropriation for the principal department.
With the support of Portfolio Ministers and the Director-General of each principal department,
the Coordinating Ministers allocate resources to agencies within the cluster through grant
funding.
A number of smaller agencies classified as special offices, and also the Legislature, continue to be
funded through separate appropriations to maintain their independence from government.
ii
Budget Estimates 2012-13
About this Budget Paper
Entities that receive an appropriation
Crown Finance Entity
Judicial Commission of New South Wales
Department of Attorney General and Justice
Ministry of Health
Department of Education and Communities
New South Wales Electoral Commission
Department of Family and Community Services
NSW Treasury
Department of Finance and Services
Ombudsman’s Office
Department of Planning and Infrastructure
Office of the Director of Public Prosecutions
Department of Premier and Cabinet
Police Integrity Commission
Department of Trade and Investment,
Public Service Commission
Regional Infrastructure and Services
Independent Commission Against Corruption
The Legislature
Transport for NSW
Independent Pricing and Regulatory Tribunal
Cluster and Agency Disclosures
This Budget Paper is structured into chapters by cluster. Each chapter begins with an overview of
total expenses and capital expenditure for each service group by agency within the cluster. This is
followed by commentary on the cluster’s purpose, services and budget highlights for 2012-13.
There is separate commentary for independent agencies.
The information for each agency generally includes service group and financial statements,
although not all sections are relevant to each agency.
Financial statements are on an accrual basis and are in line with Australian Accounting Standards
and a Financial Reporting Code issued by Treasury. The new presentation of operating
statements focuses on total expenses and total revenues, not net cost of services. Appropriations
are now treated like other revenues. This accommodates all types of general government agencies
and removes inconsistencies in the presentation of agency statements.
Budget Estimates 2012-13
iii
About this Budget Paper
Structure of Budget Paper No. 3
The presentation of information within each chapter is explained below.
Commentary for clusters and independent agencies
Section
Description
Introduction
This describes the role, main activities and responsibilities of the
cluster or independent office, and the NSW 2021 goals it is working
toward.
Services
These are the key services the agency provides.
2012-13 Budget
These are the cluster’s or special office’s significant new and
Highlights
ongoing initiatives for 2012-13. For further detail on capital projects,
see Budget Paper No. 4, Infrastructure Statement.
Service group statements
Section
Description
Service Description
This details the services and activities that are linked together under
the service group. They are described by the client group they serve,
common cost drivers or other service measures.
Service Measures
These are indicators of how efficiently the agency delivers its
services, and of the quality, volume, access and timeliness of its
service delivery.
Expenses
These are the aggregate expenses for a service group, with
significant items of particular public interest listed.
Revenues
Revenue items that are significant in amount or of particular public
interest are listed.
Capital Expenditure
This is the agency’s planned expenditure on property, plant and
equipment purchases for the service group.
Financial Statements
Section
Description
Operating Statement
This lists the major categories of expenses and revenues for each
agency.
Balance Sheet
This details the agency’s assets and liabilities.
Cash Flow Statement
This details the cash impacts of agency activities, including the cash
appropriations sourced from whole-of-government revenues.
iv
Budget Estimates 2012-13
About this Budget Paper
Changes to Reporting Entities
A number of changes since the last Budget affect reporting in this Budget Paper.
Entity
Change
Building Insurers’ Guarantee
This entity was transferred to the Treasury cluster in August 2011
Corporation
from the Finance and Services cluster, and is being reported in the
Budget Papers for the first time.
Environment Protection Authority
This was established on 29 February 2012 as part of the Premier and
Cabinet cluster.
Independent Liquor and Gaming
This entity was known as the Casino, Liquor and Gaming Control
Authority
Authority before 1 March 2012.
Mental Health Commission
This Commission was established under the Mental Health
Commission Act 2012, which was assented to on the 21 March 2012.
The Commission will be operational from 1 July 2012 as part of the
Health cluster.
Ministry of Health
The Ministry of Health was known as the Department of Health
before 5 October 2011.
Roads and Maritime Services
This was established on 1 November 2011 from the amalgamation of
the Roads and Traffic Authority of New South Wales and the Maritime
Authority of NSW.
Superannuation Administration
This entity (trading as Pillar Administration) is no longer classified by
Corporation
the Australian Bureau of Statistics as a general government sector
agency, and therefore does not appear in this Budget Paper. It is now
classified as a public financial enterprise (PFE) for Government
Finance Statistics purposes.
Sydney Metropolitan Development
After the Redfern–Waterloo Authority concluded operations, this
Authority
entity absorbed its functions from 1 January 2012.
Transport for NSW
Transport for NSW was established on 1 November 2011 as the
primary agency for planning, policy, regulation and procuring
transport services including roads and public transport. The
Transport Construction Authority was dissolved on 31 March 2012,
with Transport for NSW (TfNSW) absorbing its operations from
1 April 2012. TfNSW will also perform the functions of the Country
Rail Infrastructure Authority after it is dissolved on 30 June 2012.
Budget Estimates 2012-13
v
About this Budget Paper
Notes
Figures in tables, charts and text have been rounded. Discrepancies between totals and sums of
components reflect rounding. Percentages are based on the underlying unrounded amounts.
Unless otherwise indicated, the data source for tables and charts is NSW Treasury.
One billion equals one thousand million.
n.a. means data is not available. N/A means not applicable.
vi
Budget Estimates 2012-13