One of the functions of Parliament is to approve and scrutinise how public money is spent.
Each year the budget must pass through Parliament. The budget is made up of two main parts:
- The Appropriation Bill – this is a law that needs to be passed that sets out money will be allocated
- Budget papers – these are documents that explain how the money will be spent across the public sector
There are three main ways the Parliament scrutinises the budget and public spending:
1. Estimates Committees
The Appropriation Bill needs to go through the steps in the passage of a Bill, but after the second reading in the House of Assembly the Bill is referred to Estimates Committees. The Appropriation Bill sets out how much money the Government estimates it will need to pay for services and programs (like schools and hospitals) in the next financial year. During Estimates Committees Members of Parliament ask Ministers questions about how they plan to spend their budget money. This is one way that the Parliament scrutinises how public money is spent.
2. Examining the Auditor General’s Annual Report
The Auditor General is an independent officer that reviews the accounts of each public authority every financial year. The Auditor General provides an annual report to the Parliament. After the report has been tabled (given to the Parliament), there is time set aside to ask Ministers about issues raised in the report.
3. Through Parliamentary Committees
The Parliament has different committees that inquire into issues – learn more about committees. The House of Assembly’s Economic & Finance Committee and the Legislative Council’s Budget & Finance Committee could call on different witnesses to speak about budget related matters.
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