Professor Peter Loney
La TrobeUniversity/World Bank Institute/ Commonwealth
Parliamentary Association
Parliamentary Strengthening Seminar
Beechworth, Australia. Feb 2007
Parliamentary Committee Scrutiny Of The Budget
Most Westminster style parliaments and many non‐Westminster style
legislatures have some form of Estimates process for scrutiny of the
annual appropriations but there are almost as many models as there
are Parliaments.
In most systems Parliament’s involvement follows the conventional
Westminster form ‐ based on the principle that it is the Executive’s
responsibility to frame the Budget, and the Parliament’s responsibility
to authorise the expenditures.
One exception to this is the Canadian model, introduced in 1994,
which authorises the Standing Committee on Finance to undertake an
annual Autumn public consultation on matters that Canadians believe
should be addressed in the next budget
In April 2006, the Canadian Parliament went further with the creation
of a Parliamentary Budget Office.
Parliamentary Committee Scrutiny Of The Budget
Look at four models based essentially on the
traditional Westminster role of post preparation and
presentation scrutiny by the parliament
WESTMINSTER
scrutiny is carried out by the eighteen Departmental
Select Committees of the House of Commons
Since 2002 supported by the Scrutiny Unit.
No formal reference from the House to undertake their
enquiry into the Estimates
Given seven days to report to the House between the
presentation of the budget documents, and the vote in
the House.
Parliamentary Committee Scrutiny Of The Budget
WESTMINSTER (cont’d)
Departmental Select Committee reports on the Estimates are
not automatically debated in the House
Three days are allocated for the consideration of the
Estimates
The Government is required to respond to all Departmental
Select Committee in the House within sixty days.
AUSTRALIA
Estimates scrutiny is a function of the Senate (Upper House)
no pre‐presentation involvement of the Parliament in the
budget process
The Senate refers the Estimates statements, known as
Portfolio Budget Statements to its eight Standing
Committees
All hearings of these Committees are required to be
conducted in public
Ministers are expected to attend
Parliamentary Committee Scrutiny Of The Budget
AUSTRALIA
Generally allocated four days in which to conduct
hearings
Expected that questions will be asked and answered at
the time of the hearings, but matter s may be “taken on
notice”
Questions On Notice are deemed to be the property of
the Committee and cannot be withdrawn
Committee may schedule a further round of hearings to
deal with Questions On Notice
may receive support from the Auditor General’s Office
Committees conducts a further round of hearings
following the presentation of the Supplementary
Estimates to the Parliament in November each year
Parliamentary Committee Scrutiny Of The Budget
AUSTRALIA (cont’d)
The Senate Legislation Committees are further charged
with ongoing scrutiny of the performance of
Departments and agencies
NEW ZEALAND
The New Zealand Select Committee system underwent
major reform in 1985 in an attempt to strengthen the
accountability of the Executive to Parliament
They now have four roles:
Legislation
Consideration and reporting of Petitions
Inquiry
Scrutiny
Parliamentary Committee Scrutiny Of The Budget
NEW ZEALAND (cont’d)
Following the introduction of the Budget into the
House of Representatives the Estimates are referred to
the Finance and Expenditure Committee which may
conduct an examination of the Estimates or refer them
to the relevant Committee
Standard Estimates Questionnaire sent to all
Departments and agencies six weeks prior to the
Budget speech
asks for information which is not contained in the Budget
papers, but is helpful to explaining the relevant
Departmental vote
Committees may hold hearings and invite Ministers to
attend to explain their spending plans and policy
priorities
Parliamentary Committee Scrutiny Of The Budget
NEW ZEALAND (cont’d)
The Committees have up to two months following
delivery of the Budget to report their enquiries to the
House
no provision for a separate minority or dissenting
report
The reports of the Committees are considered by the
House prior to the Budget vote
There is no requirement for a government response to
the Estimates reports.
The Committees may be supported in their Estimates
enquiry role by the Office of the Auditor General under
a developed procedure formalised in the 2002 Code of
Practice for the Provision of Assistance by the Auditor‐
General to Select Committee Members and Members of
Parliament
Parliamentary Committee Scrutiny Of The Budget
NEW ZEALAND (cont’d)
Supplementary Estimates are also referred to the
Finance and Expenditure Committee
VICTORIA
The Victorian PAEC is unique in that it has been given
the dual roles of audit and Estimates
Has established procedures which see it adopting an
extensive Estimates hearings and reporting process
immediately following presentation of the Budget
begins its preparation for the Estimates Hearings with
the development of a Standard Questionnaire to all
departments, which is required to be answered in
writing
Parliamentary Committee Scrutiny Of The Budget
VICTORIA (cont’d)
Since 2000, the Premier, every Minister and the Presiding
Officers of Parliament appear at the public Estimates
hearings
Committee practice is that questions must be addressed to
the Minister
Questions may be taken ‘on notice’ by the Minister during
the hearing, and this then requires a written answer to be
provided to the Committee later
There is no requirement for the Committee to report on the
hearings to the Parliament prior to the Appropriations vote
but the Committee attempts to do so
also conducts annual Supplementary Estimates hearings, in
October and November at which departmental officers are
asked to explain the previous financial year’s outcomes
Parliamentary Committee Scrutiny Of The Budget
VICTORIA
The Government is required to address all recommendations
of the Committee by tabling a response in the Parliament
within six months
A further unique feature of the Victorian Parliament’s
financial scrutiny regime is the involvement of the Auditor
General in the Budget documents prior to its presentation in
the Parliament
All of the models looked at above have been developed
according to the practices and precedents of their own
Parliaments, and all have their strengths and weaknesses.
What they show is that while there is no single model for
Parliaments to carry out their responsibility to hold
Governments accountable, there is a strong understanding
of the need to do so