26K Contents of fiscal strategy report: short-term intentions

(1)

The fiscal strategy report must, for the financial year to which the report relates and at least the next 2 financial years, indicate explicitly, by the use of ranges, ratios, or other means, the Government’s short-term intentions for each of the variables specified in section 26J(1)(a).

(2)

The fiscal strategy report must—

(a)

assess the consistency of the short-term intentions referred to in subsection (1) with—

(i)

the principles of responsible fiscal management; and

(ii)

the long-term objectives referred to in section 26J(1)(a); and

(b)

if those short-term intentions are not consistent with the principles of responsible fiscal management or with the long-term objectives referred to in section 26J(1)(a) or with both, state—

(i)

the reasons for the departure of those short-term intentions from those principles or from those long-term objectives or from both; and

(ii)

the approach the Government intends to take to ensure that those short-term intentions become consistent with those principles and those long-term objectives; and

(iii)

the period of time that is expected to elapse before those short-term intentions become consistent with those principles and those long-term objectives.

(3)

The fiscal strategy report must also—

(a)

assess the consistency of the short-term intentions referred to in subsection (1)—

(i)

with the short-term intentions indicated in the most recent fiscal strategy report; or

(ii)

if the short-term intentions indicated in the most recent fiscal strategy report were amended in the budget policy statement most recently prepared under section 26M, with the short-term intentions indicated in the statement; and

(b)

if the short-term intentions referred to in subsection (1) are not consistent with the short-term intentions in the most recent fiscal strategy report or in the budget policy statement most recently prepared under section 26M, justify the departure of the short-term intentions referred to in subsection (1) from the short-term intentions in the most recent fiscal strategy report or in the statement.

Section 26K: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).