1A Purpose

(1)

The purpose of this Act is to consolidate and amend the law governing the use of public financial resources.

(2)

To that end, this Act—

(a)

provides a framework for parliamentary scrutiny of—

(i)

the Government’s expenditure proposals; and

(ii)

the Government’s management of its assets and liabilities; and

(b)

establishes lines of responsibility for effective and efficient management of public financial resources; and

(c)

specifies the principles for responsible fiscal management in the conduct of fiscal policy and requires regular reporting on the extent to which the Government’s fiscal policy is consistent with those principles; and

(d)

specifies the minimum financial and non-financial reporting obligations of Ministers, departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, and Schedule 4A companies; and

(e)

provides for the application of financial management incentives and for the accountability of Schedule 4 organisations and Schedule 4A companies; and

(ea)

places limits on the ownership of the companies named in Schedule 5; and

(f)

safeguards public assets by providing statutory authority and control for the—

(i)

borrowing of money; and

(ii)

issuing of securities; and

(iii)

use of derivatives; and

(iv)

investment of funds; and

(v)

operation of bank accounts; and

(vi)

giving of guarantees and indemnities.

Section 1A: inserted, on 25 January 2005, by section 4 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 1A(2)(d): amended, on 18 July 2013, by section 4(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 1A(2)(d): amended, on 18 July 2013, by section 4(2) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 1A(2)(e): amended, on 18 July 2013, by section 4(3) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 1A(2)(ea): inserted, on 30 June 2012, by section 4 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

Section 1A(2)(f)(iii): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).