BUDGET BILL (NORTHERN IRELAND) 2007

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 debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.

2. The Memorandum needs to be read in conjunction with the Bill. It does not, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require an explanation or comment, none is given.

BACKGROUND AND POLICY OBJECTIVES

3. Budget Bills are the legislative means by which Assembly approval will be sought for voted expenditure by Departments. Budget Bills will authorise the Department of Finance and Personnel to issue money from the Northern Ireland Consolidated Fund for the services detailed in corresponding Estimates volumes and summarised in Schedules in the Bill. Budget Bills also authorise the use of resources for the services detailed in corresponding Estimates volumes and summarised in Schedules in the Bill. 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 taken to cover the Main Estimates (initial voted provision for a financial year) and subsequent Supplementary Estimates which increase or vary what was approved in the Main Estimates.

4. The Bill gives effect to the 2007-2008 Northern Ireland Main Estimates and authorises the issue from the Consolidated Fund of Northern Ireland of £7,079,776,000, in addition to a cash sum of £5,050,369,000 n the Vote on Account authorised by the Budget (NI) Order 2007. The Bill also authorises the use of resources amounting to £7,922,535,000 in addition to an amount of £6,216,507,000 authorised by the Budget (NI) Order 2007 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 2008; in addition, the Bill authorises temporary borrowing by the Department of Finance and Personnel and repeals a number of spent enactments.

5. The sums to be issued from the Consolidated Fund of Northern Ireland for the year ending 31 March 2008 are to be appropriated for services, as set out in Schedule 1 to the Bill.

6. The amount of resources (including accruing resources) authorised for use for the year ending 31 March 2008 are to be used for the purposes specified in Schedule 2 to the Bill.

COMMENTARY ON CLAUSES

7. Clause 1 : Issue of Sum out of the Consolidated Fund for year ending 31st March 2008 and appropriation of that sum.

Subsection (1) authorises the issue out of the Consolidated Fund of Northern Ireland the sum of £7,079,776,000 for 2007-2008.

Subsection (2) appropriates that sum for the purpose specified in 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 aggregate 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 year ending 31st March 2008.

This clause authorises the use of resources amounting to £7,922,535,000 for 2007-2008, for the purposes specified in column 1 of Schedule 2.

Clause 4 : Limit on use of accruing resources in year ending 31st March 2008.

This clause sets the limits on the accruing resources that may be directed to be used for certain purposes in the year ended 31 March 2008.

Clause 5 : Repeal of Spent Enactments

This Bill removes from the statute book two Appropriation Orders which are no longer operative.

Clause 6 : Interpretation

As in Budget Bill.

Clause 7 : Short Title

This clause sets out the title of the Act.

FINANCIAL EFFECTS OF THE BILL

No effect on this area.

HUMAN RIGHTS ISSUES

No effect on this area.

EQUALITY IMPACT ASSESSMENT

No effect on this area.

SUMMARY OF THE REGULATORY IMPACT ASSESSMENT

No effect on this area.

LEGISLATIVE COMPETENCE

The Minister of the Department of Finance and Personnel, the Right Honourable Peter D. Robinson MP MLA, has made the following statement under section 9 of the Northern Ireland Act 1998:

“In my view the Budget Bill (Northern Ireland) 2007 would be within the legislative competence of the Northern Ireland Assembly.”

RECOMMENDATION

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 this Bill to the Assembly as is required by section 63 of the Northern Ireland Act 1998.”