Throughout 2013–14, the Parliamentary Budget Office (PBO) demonstrated its effectiveness in significantly levelling the playing field for all parliamentarians and enhancing the transparency of election commitments and the Budget more generally.
In the lead-up to the September 2013 general election, the PBO faced a consistently high demand for policy costings and budget analyses from parliamentarians and parliamentary parties. By polling day, the PBO had responded to 1,167 such requests and there were no outstanding requests for which adequate information had been provided.
With the exception of 89 requests that were submitted to the PBO during the caretaker period, all other requests were made in the months leading up to the caretaker period. This allowed the PBO to work progressively with parliamentarians and parliamentary parties to provide them with up-to-date costings as they developed their policies on an iterative basis.
For the first time, access to the services of the PBO over an extended period in the lead-up to the election gave parliamentarians and parliamentary parties, in particular non-government parliamentarians and parliamentary parties, greater confidence in the accuracy of the costs of their policies when publicly releasing them. The first post-election report of the budget impact of election commitments, published by the PBO 30 days after the end of the caretaker period, confirmed the accuracy of the costs of the election commitments publicly announced by the major parties prior to the election.
The demand for the PBO’s costing and budget analysis services continued in the second half of the financial year pointing to a likely ongoing utilisation of the PBO by parliamentarians over the course of the electoral cycle.
Over the course of the full year, the PBO responded to 1,520 requests for costings and budget analyses. The PBO was assisted in its work by 397 responses from government agencies to requests for information from the PBO.
Following the election period, the PBO published two reports and a budget chart pack as part of its ongoing research program that focuses on budget sustainability and transparency.
The reports examined historical trends and drivers of government expenditure and receipts in order to provide an improved basis for understanding the key factors impinging on fiscal sustainability and the future direction of fiscal policy. The budget chart pack comprised a graphical summary of the 2014–15 Budget relative to the 2013–14 Mid-Year Economic and Fiscal Outlook showing key budget information in a more readily accessible form.
After the election, the Australian National Audit Office (ANAO) conducted a performance audit of the administration of the PBO, tabling its report in June 2014.
The ANAO concluded that ‘the PBO has effectively undertaken its statutory role and is already well regarded as an authoritative, trusted and independent source of budgetary and fiscal policy analysis’. The ANAO found that ‘the PBO has made a significant contribution to levelling the playing field for all parliamentarians’.
Further, the ANAO reported that stakeholders agreed that ‘the PBO’s work has improved the transparency around election commitments and facilitated a more informed public debate about budgetary matters’.
The PBO continued to develop its professional capabilities by recruiting and training staff, and building its repositories of data and models.
The PBO’s governance arrangements were also strengthened by a range of initiatives, including the adoption of a risk management framework and a business continuity management framework.
As a signatory to the Parliamentary Service 2013–15 Reconciliation Action Plan, the PBO is developing policies to support an accessible and inclusive work environment and is enhancing cultural awareness through promotion of cultural events, staff training and induction programs.
The PBO received an unmodified opinion on its 2013–14 financial statements from the ANAO. These statements can be found in Part 4.
The PBO recorded an operating surplus during the year of $1.574 million, comprising total revenue of $8.565 million and expenses of $6.991 million. The surplus was due largely to the use of departmental and special appropriation revenue for capital expenditure on the PBO’s permanent accommodation and secure IT network.
As at 30 June 2014, the PBO was in a sound net worth position, reporting net assets of $3.249 million, represented by assets of $5.152 million and liabilities of $1.903 million.
As at 30 June 2014, the PBO had departmental appropriations receivable totalling $1.893 million, which are held for employee provisions and other payables. In addition, the PBO had a balance of $5.300 million in the special appropriation made under section 64D of the Parliamentary Service Act 1999.
I wish to acknowledge the support of the Presiding Officers to the PBO throughout the year and the role that the Joint Committee of Public Accounts and Audit (JCPAA) played in relation to the PBO’s resourcing and work plan preparation.
The PBO’s achievements in 2013–14 can, in very large measure, be attributed to the professionalism, dedication and hard work of the PBO’s staff. For this, and their independent and non-partisan approach to their duties, they deserve high praise.
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