The year in review
The 2014–15 financial year was a year of consolidation for the Parliamentary Budget Office (PBO).
The PBO’s third year of operations was characterised by a continuing strong demand from parliamentarians for its costing and budget analysis services and a greater focus on its self-initiated research program.
Over the course of the year the PBO responded to 869 requests from parliamentarians. Nearly all of the PBO’s responses were prepared on a confidential basis. This reflected the fact that the PBO’s costings and budget analyses were utilised by parliamentarians as an integral part of their internal policy development processes.
A number of responses were made public throughout the year in policy announcements by the parliamentarians who commissioned the PBO to undertake work on their behalf.
The PBO continued to build its skills base and data and model repositories to further strengthen its capabilities and improve its ability to respond to parliamentarians’ requests. It also continued to strengthen the co-operative arrangements with Commonwealth agencies for access to data and financial models to be utilised in costings and other analyses, including the PBO’s published research program.
The PBO plays an important role in making key budget information more accessible and understandable by parliamentarians and the public through its self-initiated research program. The research program seeks to help improve budget transparency and promote better public understanding of the budget and fiscal policy settings.
The PBO’s research program in 2014–15 continued to focus on the sustainability of the budget over the medium term. The PBO published four research reports, two budget chart packs (2014–15 Mid-Year Economic and Fiscal Outlook, and 2015–16 Budget) and one technical note during 2014–15.
The research reports focussed mainly on the medium-term budget outlook and the sensitivity of the budget to economic shocks. The technical note was published to explain the PBO’s approach to determining the reliability ratings that are included in each of the PBO’s costing documents.
Following the performance audit of the PBO by the Australian National Audit Office (ANAO) in 2013–14, the Joint Committee of Public Accounts and Audit (JCPAA) conducted a review of the PBO’s operations. The JCPAA reported to the Parliament in November 2014 making a number of recommendations to support the PBO’s operations.
The Government responded to the JCPAA in June 2015 noting and/or supporting the Committee’s recommendations with the exception of the recommendation that the PBO should have access to the details of the Contingency Reserve in the budget. The PBO’s costings remain subject to the caveat (PBO Guidance: 05/2013 refers) that the PBO does not have access to the details of the Contingency Reserve.
Towards the end of 2014–15 the PBO commissioned an independent research firm to conduct a survey of the PBO’s key stakeholders, including parliamentarians and their staff, independent analysts and media representatives.
A large majority of respondents to this survey indicated that they were satisfied with the work of the PBO and agreed that the PBO is non-partisan, independent, operates with integrity, improves the transparency of the budget and fiscal policy settings, and helps to level the playing field for all parliamentarians. There was strong satisfaction with the quality of the PBO’s policy costings, budget analyses and research publications.
Stakeholder satisfaction with the PBO’s service delivery arrangements was also high. In particular, the professionalism, accessibility and helpfulness of staff were rated highly, as was the consistency of the information provided by the PBO.
Stakeholders would, however, like to see an improvement in the timeliness of the PBO’s responses. This will require continuing attention to the PBO’s data collection, model development and staff training, and ensuring that the PBO is adequately resourced to cope with the sustained high demand for its services.
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