BUDGET (no. 2) BILL ( NORTHERN IRELAND) 2008
EXPLANATORY AND FINANCIAL MEMORANDUM
INTRODUCTION
1. This Explanatory and Financial Memorandum has been prepared by the Department of Finance and Personnel, in order to assist the reader of the Bill and to help inform the debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.
2. The Memorandum should be read in conjunction with the Bill. It is not, and is not meant to be, a comprehensive description of the Bill, and where a clause or part of a clause does not seem to require any explanation or comment, none is given.
BACKGROUND
3. Budget Bills are the legislative means by which Assembly approval will be sought for departments and certain other public bodies to incur expenditure and use resources as detailed in the corresponding Estimates volume and summarised in the Schedules to the Bills. Furthermore, the Budget Bills will enable the Assembly to hold departments accountable for managing and controlling those resources within the limits authorised.
4. The Budget Bill will not only authorise the use of resources but contains powers to authorise the issue of sums of cash from the Northern Ireland Consolidated Fund to departments and other public bodies and appropriate those sums to services. Budget Bills also set the relevant limits on the accruing resources that may be directed to be used for purposes specified in the Schedules to the Bill. Accruing resources are divided into two categories: a) operating accruing resources, which is resource income offset against the gross resource expenditure and b) non-operating accruing resources, which is capital income, mainly relating to the sale of assets, and offset against gross capital spend.
5. Estimates volumes and other relevant documents are published so as to be available when Budget Bills are introduced in the Assembly. Separate Budget Bills will be introduced relating to the Main Estimates (initial voted provision for a financial year) and subsequent Supplementary Estimates which revises that initial provision as a result of the in-year monitoring rounds. The Budget Bill relating to the Supplementary Estimates will also provide interim resources and funding (around 45%) for the first few months of the next financial year.
PURPOSE
6. The Bill will give effect to the 2008-2009 Northern Ireland Main Estimates and will authorise the issue of cash from the Consolidated Fund of Northern Ireland of £7,184,270,000 in addition to the cash sum in the Vote on Account authorised by the Budget Act (NI) 2008. The Bill also authorises the use of resources amounting to £8,474,916,000, in addition to the Vote on Account amount authorised by the Budget Act (NI) 2008 and specifies the limits on the amount of accruing resources, including both operating and non-operating accruing resources, that may be directed to be used for certain purposes for the year ending 31 March 2009. In addition, the Bill authorises temporary borrowing by the Department of Finance and Personnel.
7. The sums to be issued from the Consolidated Fund of Northern Ireland for the year ending 31 st March 2009 are to be appropriated for services, as set out in Schedule 1 to the Bill.
8. The amount of resources (including accruing resources) authorised for use for the year ending 31 st March 2009 are to be used for the purposes specified in Schedule 2 to the Bill.
9. The Bill also authorises an excess amount of cash of £7,224,593.19 for the Department of Health, Social Services and Public Safety – Health and Personal Social Services Superannuation in respect of the 2006-07 financial year.
10. A number of spent enactments will also be repealed.
COMMENCEMENT
11. The legislation shall come into operation on Royal Assent.
COMMENTARY ON CLAUSES
Clause 1: Issue of sum out of the Consolidated Fund for the year ending 31 st March 2009 and appropriation of that sum
Sub-section (1) authorises the issue out of the Consolidated Fund of Northern Ireland of the sum of £7,184,270,000 for 2008-2009.
Sub-section (2) appropriates that sum for the purposes specified in column 1 of Schedule 1.
Clause 2: Power of the Department of Finance and Personnel to borrow
This clause authorises the temporary borrowing by the Department of Finance and Personnel of approximately half the sum covered by Clause 1 (1). This is a normal safeguard against the possibility of a temporary deficiency arising in the Northern Ireland Consolidated Fund.
Clause 3: Use of resources (other than accruing resources) in the year ending 31 st March 2009
This clause authorises the use of resources amounting to £8,474,916,000 for 2008-2009, for the purposes specified in column 1 of Schedule 2.
Clause 4: Limit on use of accruing resources in the year ending 31 st March 2009
This clause sets the limits on the accruing resources that may be directed to be used for certain specified purposes in the year ending 31 st March 2009
Clause 5: Cash excess for year ending 31 st March 2007
This clause, which relates to the Department of Health, Social Services and Public Safety Superannuation Estimate, authorises the issue of £7,224,593.19 from the Consolidated Fund for 2006-07 for excess expenditure on superannuation benefits to or in respect of persons engaged in the health and personal social services or in other approved employment.
Clause 6: Repeal of spent provisions
This Bill removes from the statute book two Budget Orders which are no longer operative.
Clause 7:Interpretation
As in Budget Bill.
Clause 8:Short title
This clause sets out the title of the Bill.
FINANCIAL EFFECTS OF THEBILL
12. As detailed above.
HUMAN RIGHTS ISSUES
13. No effect on this area.
EQUALITY IMPACT ASSESSMEN T
14. No effect on this area.
SUMMARY OF THE REGULATORY IMPACT ASSESSMENT
15. No effect on this area.
LEGISLATIVE COMPETENCE
16. At Introduction, the Minister of the Department of Finance and Personnel, the Right Honourable Peter D. Robinson MP MLA, had made the following statement under section 9 of the Northern Ireland Act 1998:
“In my view, the Budget (No. 2) Bill ( Northern Ireland) 2008 would be within the legislative competence of the Northern Ireland Assembly.”
RECOMMENDATION
17. The Minister in charge of the Bill, the Right Honourable Peter D. Robinson MP MLA has made the following recommendation as required under section 63 of the Northern Ireland Act 1998.
“As Minister of Finance and Personnel, I recommend the Budget (No. 2) Bill ( Northern Ireland) 2008 to the Assembly as is required by section 63 of the Northern Ireland Act 1998.”