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Budget 2012-2013 Budget Paper No.3 The Budget



Budget 2012-2013 Budget Paper No.3 The Budget

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Tabled paper 1785


Tabled Papers for 11th Assembly 2008 - 2012; Tabled Papers; ParliamentNT




Tabled By Delia Lawrie


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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3 Overview GBDs are required, where appropriate, to disaggregate income and expense information by business line. An operating surplus/deficit before income tax is also provided by business line. A statement is provided concerning the GBDs expected performance in the Budget year, relative to the current year, along with performance measures for each business line. As with agencies, GBDs will report on actual outcomes against their business lines and performance measures in their annual reports. Government owned business activities are required to comply with competitive neutrality principles to ensure that privately owned businesses can compete effectively and to minimise any commercial advantages accruing as a result of Government ownership. The Territory Government has established a formal mechanism to allow private sector businesses to make competitive neutrality complaints against GBDs. Northern Territory Treasury is responsible for managing competitive neutrality complaints. If a complaint is upheld, appropriate action to ensure compliance with competitive neutrality principles is determined on a case by case basis. Accruals Under an accrual framework, income (revenue and gains) and expenses are recorded in the period in which they occur, even though no cash may have been received or paid. Accrual accounting includes transactions where no cash is exchanged, such as transactions involving the creation of obligations to pay or rights to receive cash in the future. Accrual accounting also records transactions relating to the cost of using assets in the production of outputs, which is known as depreciation expense and is a noncash cost. Appropriation Arrangements The Northern Territory has a cash Appropriation framework. Appropriation is provided to fund agencies and this is their main income and cash source. Three types of appropriation for agencies are recognised output appropriation, capital appropriation and Commonwealth appropriation. All three appropriation types are designated in the Appropriation Act as Purposes as they reflect a purpose for providing funds, and are shown separately on agency financial statements. 201112 Estimate The estimates information presented in this Budget Paper for 201112 reflects the approved revised 201112 Budget. This is determined from the original 201112Budget, as tabled in May 2011, adjusted for the Governments new policy decisions and changes in response to demand that have occurred during the year. The budget variations are approved in accordance with the requirements of the FMA, with formal variation instruments then tabled in the Territory Parliament. 201213 Budget The 201213 Budget has been developed from the forward estimates model, with inflator and deflator factors applied and additional funding incorporated for initiatives approved in the budget development process.