New Zealand Legislation: Acts
Acts are laws made by Parliament
The principal Act is amended by repealing Parts 1 (appropriations) and 2 (banking and investment), and substituting the following Parts:
“Part 1
“Appropriations“Requirement for appropriations
“4 Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority
“(1) The Crown or an Office of Parliament must not incur expenses or capital expenditure, except as expressly authorised by an appropriation, or other authority, by or under an Act.
“(2) In this section, expense does not include an expense that results from—
“(a) a remeasurement of an asset or a liability; or
“(b) an operating loss incurred by—
“(i) a Crown entity named or described in the Crown Entities Act 2004; or
“(ii) an organisation named or described in Schedule 4; or
“(iii) a State enterprise named in the Schedule 1 of the State-Owned Enterprises Act 1986; or
“(iv) the Reserve Bank of New Zealand; or
“(v) any other entity whose financial statements must be consolidated into the financial statements of the Government to comply with generally accepted accounting practice.
“5 Public money must not be spent unless in accordance with statutory authority
The Crown or an Office of Parliament must not spend public money, except as expressly authorised by or under an Act (including this Act).
“6 Authority to spend public money
Public money may be spent, without further authority than this section, for the purpose of—
“(a) meeting expenses or capital expenditure incurred in accordance with an appropriation or other authority by or under an Act; and
“(b) the payment of goods and services tax in relation to those expenses or capital expenditure; and
“(c) the repayment of debt of the Crown or an Office of Parliament; and
“(d) the settlement of liabilities of the Crown or an Office of Parliament.
“7 Separate appropriation required for types of expenses and capital expenditure
“(1) A separate appropriation must be made for—
“(a) each category of output expenses; and
“(b) each category of benefits or other unrequited expenses; and
“(c) each category of borrowing expenses; and
“(d) each category of other expenses; and
“(e) each category of capital expenditure; and
“(f) expenses and capital expenditure to be incurred by each intelligence and security department.
“(2) All expenses or capital expenditure to be incurred in any financial year must be allocated to 1 of the types of appropriation set out in subsection (1) within a Vote specified in an Appropriation Act.
“(3) An output expense appropriation referred to in subsection (1)(a) must consist of—
“(a) a class of outputs to be supplied—
“(i) by a department; or
“(ii) to or on behalf of the Crown (other than by a department); or
“(b) if the Minister approves, more than 1 class of outputs (a multi-class output expense appropriation) to be supplied—
“(i) by a department; or
“(ii) to or on behalf of the Crown (other than by a department).
“(4) However, if subsection (3)(b) applies, the Estimates or other supporting information that must be presented with the Appropriation Bill in which the multi-class output expense appropriation is sought must,—
“(a) to the extent required by section 14 or, as the case may be, section 15, relate to each class of outputs in that appropriation; and
“(b) explain why those classes of outputs have been grouped under that 1 appropriation.
“8 Appropriation limited by amount
The authority to incur expenses or capital expenditure provided by an appropriation under an Appropriation Act—
“(a) is limited to the amount specified for the appropriation by or under that Act; and
“(b) may not be exceeded (except as provided for in section 25 or section 26A or section 26B).
“9 Appropriation limited by scope
“(1) The authority to incur expenses or capital expenditure provided by an appropriation—
“(a) is limited to the scope of the appropriation; and
“(b) may not be used for any other purpose.
“(2) For the purposes of subsection (1),—
“(a) the scope of a multi-class output expense appropriation is the scope of each of the individual classes of outputs included in that appropriation; and
“(b) any variation made by the Minister of the terms and conditions of a capital injection to any entity referred to in section 27(3)(a) to (f) does not change the scope or purpose of that capital injection.
“10 Appropriation limited by period
“(1) The authority to incur expenses or capital expenditure provided by an appropriation under an Appropriation Act lapses at the end of the financial year to which the Act relates.
“(2) However, if an Appropriation Act provides that the authority to incur expenses or capital expenditure applies for more than 1 financial year, that authority—
“(a) lapses at the end of the period specified in the Act; and
“(b) continues in force until the end of the period specified despite the repeal of the Act, unless the authority is expressly varied, revoked, or replaced by an authority in another Appropriation Act.
“(3) Despite subsection (2), the authority to incur expenses or capital expenditure must not apply for more than 5 financial years.
“11 Expenses or payments authorised other than by Appropriation Act
“(1) If an Act (other than an Appropriation Act) expressly provides for payments to be appropriated by or under that Act, any expense or capital expenditure incurred that gives rise to the need for those payments may be incurred without further appropriation than this section.
“(2) Each expense or capital expenditure incurred in accordance with an appropriation by or under an Act (other than an Appropriation Act) must be managed and accounted for in the same manner as expenses or capital expenditure incurred in accordance with an Appropriation Act.
“12 Timing of first Appropriation Bill for financial year
Except as otherwise provided by a resolution of the House of Representatives, the first Appropriation Bill that relates to a financial year must be introduced into the House of Representatives before the end of the first month after the start of that financial year.
“Information requirements for appropriations
“13 Estimates and other supporting information must be presented with first Appropriation Bill
“(1) The Minister must present to the House of Representatives the Estimates immediately after he or she has delivered the Budget.
“(2) The Minister must also present to the House of Representatives the other supporting information referred to in section 15 at the same time he or she presents the Estimates under subsection (1), unless that other supporting information is already contained in the Estimates.
“14 Content of Estimates
“(1) The Estimates must state,—
“(a) for each appropriation being sought in the first Appropriation Bill for a financial year,—
“(i) the Vote to which the appropriation relates; and
“(ii) the Minister responsible for the appropriation; and
“(iii) the department that will administer the Vote containing the appropriation; and
“(iv) the type of the appropriation (in terms of section 7); and
“(v) the amount of each expense or capital expenditure authorised by the appropriation (in terms of section 8); and
“(vi) the scope of the appropriation (in terms of section 9); and
“(vii) the period of the appropriation, but only if the period is more than 1 financial year (in terms of section 10); and
“(b) for each department, the Responsible Minister for the department; and
“(c) for each department other than an intelligence and security department, the projected balance of net assets for the department at the end of the financial year (in terms of section 23(1)(c)).
“(2) The Minister may, in addition to the information referred to in this section, include in the Estimates any further information that the Minister considers necessary or desirable.
“15 Other supporting information for first Appropriation Bill
“(1) The other supporting information for the first Appropriation Bill must, for each appropriation, include—
“(a) a concise explanation of each appropriation (including the intended impacts, outcomes, or objectives of the appropriation); and
“(b) the performance measures and forecast standards to be achieved for each class of outputs; and
“(c) the forecast expenses to be incurred for each class of outputs within a multi-class output expense appropriation; and
“(d) comparative voted and estimated actual expenses or capital expenditure for each appropriation for the previous financial year.
“(2) The other supporting information must, for each Vote, include—
“(a) comparative voted and estimated actual expenses or capital expenditure for the previous financial year, and comparative actual expenses or capital expenditure for each of the 4 financial years that preceded the previous financial year, for the total of each of the types of appropriation set out in section 7(1); and
“(b) a summary of the financial activity relating to the Vote for the financial year to which the Appropriation Bill relates, and comparative budgeted and estimated actual figures for the previous financial year.
“(3) The other supporting information must also include, for each category of expense or capital expenditure that is proposed to be incurred in accordance with an appropriation by an Act (other than an Appropriation Act),—
“(a) the information required, under subsection (1) and section 14 for each appropriation (except that the reference in section 14(1)(a)(v) to the amount of each expense or capital expenditure authorised by the appropriation must be read as a reference to the amount of each expense or capital expenditure forecast to be incurred under the appropriation); and
“(b) the authority for that expense or capital expenditure.
“(4) The Minister may, in addition to the information referred to in this section, present any further information that the Minister considers necessary or desirable.
“(5) Subsections (1)(a) and (b) and (2)(b) do not apply to an appropriation made in accordance with section 7(1)(f).
“16 Supplementary Estimates must be presented with Supplementary Appropriation Bill
The Minister must present to the House of Representatives the Supplementary Estimates on the day of the introduction of an Appropriation Bill that is other than—
“(a) the first Appropriation Bill for a financial year; or
“(b) an Appropriation Bill that deals only with matters that relate to a previous financial year.
“17 Content of Supplementary Estimates
“(1) The Supplementary Estimates must,—
“(a) if information about an appropriation or department was provided in the Estimates or previous Supplementary Estimates for the same financial year, state any changes to the information about that appropriation or department that—
“(i) is required under section 14; and
“(ii) is contained in those Estimates; or
“(b) if information about an appropriation or department was not provided in the Estimates or previous Supplementary Estimates for the same financial year, state the information about that appropriation or department that is required under section 14.
“(2) If subsection (1)(b) applies, the Minister must also present the information about the appropriation that is required under section 15(1)(a) to (c).
“18 Minister must consult on proposal to change format or content of information presented with Appropriation Bills
“(1) This section applies if the Minister proposes to significantly change the format or content of—
“(a) the Estimates; or
“(b) the other supporting information referred to in section 15; or
“(c) the Supplementary Estimates.
“(2) Before giving effect to the proposal, the Minister must—
“(a) submit the proposal to the Speaker (who must then present it to the House of Representatives); and
“(b) consider any comments that he or she receives from—
“(i) the Speaker; or
“(ii) any committee of the House of Representatives that considered the proposal.
“19 Power of Secretary to obtain information
“(1) The Secretary may request a department or an entity referred to in section 27(3)(a) to (f), or an entity that manages an asset or liability of the Crown, to supply to the Secretary any information that is necessary to enable the preparation of—
“(a) the Estimates; and
“(b) the other supporting information referred to in section 15; and
“(c) the Supplementary Estimates.
“(2) A request under subsection (1)—
“(a) must be in writing; and
“(b) may state the date by which, and the manner in which, the information requested must be provided.
“(3) If a date is specified under subsection (2)(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives—
“(a) the Estimates or other supporting information referred to in section 15; and
“(b) the Supplementary Estimates.
“(4) A department or entity to whom the request is made must comply with the request.
“Other provisions relating to appropriations
“20 Departments may incur output expenses for, or on behalf of, other departments
“(1) This section applies if an output is supplied by a department (A) for, or on behalf of, another department (B) in accordance with an agreement between A and B.
“(2) Output expenses may be incurred by A, without further appropriation than this section, up to the amount of revenue earned from B.
“(3) However, A must return to B any revenue earned by the supply of the output that is not utilised toward the costs of the output.
“21 Expenses restricted by revenue
“(1) If a class of outputs is supplied by a department, output expenses may be incurred, without further appropriation than this section, up to the amount of revenue expected to be earned by that class of outputs from parties other than the Crown.
“(2) However, subsection (1) applies only if—
“(a) the appropriation is limited to 1 class of outputs; and
“(b) the appropriation to which the output expenses are to be charged is specified in an Appropriation Act for that year as being supplied under this section; and
“(c) the approval of the Minister for the output expenses to be incurred under this section has been given.
“(3) Despite subsections (1) and (2), the Minister may direct that only part of the output expenses may be incurred to a level less than the amount of the revenue earned from parties other than the Crown.
“(4) This section does not authorise output expenses to be incurred, in respect of any class of outputs, that exceed the actual amount of revenue earned by that class of outputs from parties other than the Crown in any year.
“(5) In this section, a reference to the amount of revenue earned by a class of outputs from parties other than the Crown may include a reference to the amount of revenue earned by a class of outputs from another department.
“22 Operating surplus of department
“(1) Except as agreed between the Minister and the Responsible Minister for a department, the department must not retain any operating surplus that results from its activities.
“(2) The reported net asset holding of a department may increase as a result of a remeasurement without further authority than this section.
“(3) The amount of net asset holding in a department must not exceed the most recent projected balance of net assets for that department at the end of the financial year, as set out in an Appropriation Act in accordance with section 23(1)(c).
“(4) Subsection (3) is subject to subsections (1) and (2).
“23 Net assets of departments must be confirmed
“(1) Each Appropriation Bill that is introduced before the end of the financial year to which the Bill relates must include a schedule that shows for each department (other than an intelligence and security department)—
“(a) either of the following:
“(i) the most recently audited amount of net assets; or
“(ii) the most recently projected amount of net assets at the start of that financial year to which the appropriations sought in that Bill apply; and
“(b) projected movements in net assets during that financial year; and
“(c) the projected balance of net assets at the end of that financial year.
“(2) The projected movements in net assets referred to in subsection (1)(b) must include as separate items—
“(a) any projected capital injections and withdrawals; and
“(b) any surpluses projected to be retained in accordance with section 22(1).
“24 Movements within departmental statement of financial position
“(1) A department may, without further appropriation than this section, use the proceeds of the sale or disposal of any of its assets, together with any working capital held by it, to purchase or develop assets.
“(2) A department may, without further authority than this section, use the proceeds of the sale or disposal of its assets, together with any working capital held by it, to pay its liabilities.
“25 Expenses or capital expenditure may be incurred in emergencies
“(1) This section applies if—
“(a) a state of emergency or state of civil defence emergency is declared under the Civil Defence Act 1983 or the Civil Defence Emergency Management Act 2002; or
“(b) a situation occurs that affects the public health or safety of New Zealand or any part of New Zealand that the Government declares to be an emergency.
“(2) The Minister may approve expenses or capital expenditure to be incurred to meet the emergency or disaster and, whether or not there is an appropriation by Parliament available for the purpose and despite sections 4, 8, and 9, the expenses or capital expenditure may be incurred accordingly.
“(3) If expenses or capital expenditure that have not been appropriated are incurred under subsection (2), the Minister must publish a notice in the Gazette, stating that the expenses or capital expenditure have been so incurred.
“(4) Public money may be spent, without further authority than this section, for the purpose of meeting expenses or capital expenditure incurred in accordance with subsection (2) that have not been appropriated.
“(5) A statement about any expenses and capital expenditure incurred under this section in any financial year that have not been appropriated must be included in—
“(a) the annual financial statements of the Government; and
“(b) an Appropriation Bill for confirmation by Parliament.
“(6) Subsection (5) does not limit the validity of any expenses or capital expenditure incurred under this section.
“26 Minister may determine terms and conditions of capital injections
“(1) The Minister, after consultation with the Minister responsible for an entity, may—
“(a) determine the terms and conditions under which any capital injection authorised by an appropriation under section 7(1)(e) or any other authority is to be made to that entity; and
“(b) vary those terms and conditions at any time.
“(2) However, subsection (1)(b) does not apply in respect of a State enterprise named in the Schedule 1 of the State-Owned Enterprises Act 1986.
“26A Transfer of resources between output expense appropriations
“(1) The Governor-General may, by Order in Council, direct that an amount appropriated for an output expense appropriation in a Vote be transferred, without further appropriation than this section, to another output expense appropriation in that Vote if—
“(a) the amount transferred does not increase that appropriation for a financial year by more than 5%; and
“(b) no other transfer under this section to that appropriation has occurred during that financial year; and
“(c) the total amount appropriated for that financial year for all output expense appropriations in that Vote is unaltered.
“(2) A clause that confirms the making of an Order in Council under subsection (1) in a financial year must be included in an Appropriation Bill that applies to that financial year.
“(3) Subsection (2) does not limit the validity of an Order in Council made under subsection (1) or the validity of any transfer made under that Order in Council.
“26B Minister may approve expenses or capital expenditure to be incurred in excess of existing appropriation
“(1) This section applies if the Minister considers that the incurring of expenses or capital expenditure in the last 3 months of any financial year that is in excess, but within the scope, of an existing appropriation by or under an Act should be approved.
“(2) The Minister may, in that financial year or not later than 3 months after the end of that financial year, approve in respect of that appropriation up to the greater of—
“(a) an amount not exceeding $10,000; or
“(b) 2% of the total amount appropriated for that appropriation.
“(3) Subsection (2) applies—
“(a) even though all or part of the expenses or capital expenditure may have been incurred; and
“(b) despite sections 4 and 8.
“(4) Any expenses or capital expenditure that the Minister approves under this section must be included, for confirmation by Parliament, in an Appropriation Bill that applies to that financial year.
“(5) Subsection (4) does not limit the validity of any expenses or capital expenditure incurred under this section.
“26C Expenses or capital expenditure incurred without appropriation or other authority requires validation by Parliament
“(1) The incurring of any expenses or capital expenditure without appropriation, or other authority, by or under an Act is unlawful, unless it is validated by Parliament in an Appropriation Act.
“(2) The Minister must, on the introduction of any Appropriation Bill that seeks validation by Parliament of any expenses or capital expenditure incurred without appropriation, or other authority, by or under an Act, present to the House of Representatives a report that sets out—
“(a) the amount of each category of expenses or capital expenditure so incurred; and
“(b) the explanation of the Minister responsible for the expenses or capital expenditure.
“26D Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation
“(1) This section applies to any expenses or capital expenditure—
“(a) that has been incurred without appropriation; or
“(b) that has been incurred in excess of an existing appropriation.
“(2) A statement that relates to any expenses or capital expenditure to which this section applies must be included in—
“(a) the annual financial statements of the Government for the financial year; and
“(b) the annual financial statements of the administering department for the financial year in accordance with section 45B(2)(d).
“Application of this Part to Offices of Parliament
“26E Application of this Part to Offices of Parliament
“(1) Before an appropriation in a Vote administered by an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must prepare and submit to the House of Representatives the following information:
“(a) an estimate of expenses and capital expenditure to be incurred for—
“(i) each proposed appropriation; and
“(ii) each class of outputs within an appropriation; and
“(b) the projected balance of net assets (in terms of section 23(1)(c)); and
“(c) the revenue of the Office (including the revenue associated with each proposed expenses appropriation and each output class).
“(2) The House of Representatives, after considering the information provided under subsection (1), may for each Office of Parliament commend to the Governor-General, by way of an address, the estimates for each of the matters set out in subsection (1)(a) to (c).
“(3) The House of Representatives may, in that address, request that the estimates referred to in subsection (2) be included as a Vote in an Appropriation Bill for that year.
“(4) If that Vote is included in an Appropriation Bill for that year, this Part applies, with all necessary modifications, as if references to a department were references to an Office of Parliament.
“(5) An alteration to a Vote administered by an Office of Parliament during a financial year is subject to the provisions of this section.
“Part 2
“Fiscal responsibility“Preliminary
“26F Interpretation
If the context requires, references in this Part to total debt, total operating expenses, total operating revenues, and total net worth are references to the total fiscal aggregates of the forecast financial statements prepared in accordance with section 26Q.
“26G Principles of responsible fiscal management
“(1) The Government must pursue its policy objectives in accordance with the following principles (the principles of responsible fiscal management):
“(a) reducing total debt to prudent levels so as to provide a buffer against factors that may impact adversely on the level of total debt in the future by ensuring that, until those levels have been achieved, total operating expenses in each financial year are less than total operating revenues in the same financial year; and
“(b) once prudent levels of total debt have been achieved, maintaining those levels by ensuring that, on average, over a reasonable period of time, total operating expenses do not exceed total operating revenues; and
“(c) achieving and maintaining levels of total net worth that provide a buffer against factors that may impact adversely on total net worth in the future; and
“(d) managing prudently the fiscal risks facing the Government; and
“(e) pursuing policies that are consistent with a reasonable degree of predictability about the level and stability of tax rates for future years.
“(2) However, the Government may depart from the principles of responsible fiscal management if—
“(a) the departure from those principles is temporary; and
“(b) the Minister, in accordance with this Act, states—
“(i) the reasons for the departure from those principles; and
“(ii) the approach the Government intends to take to return to those principles; and
“(iii) the period of time that the Government expects to take to return to those principles.
“26H Generally accepted accounting practice
All financial statements and forecast financial statements included in reports and updates required under this Part must be prepared in accordance with generally accepted accounting practice.
“Fiscal strategy report
“26I Fiscal strategy report
“(1) The Minister must, in each financial year and in accordance with subsection (2), present to the House of Representatives a report on the Government's fiscal strategy.
“(2) The Minister must present the fiscal strategy report immediately after he or she has delivered the Budget for the financial year to which the report relates.
“(3) Sections 26J to 26L set out the contents of the fiscal strategy report.
“26J Contents of fiscal strategy report: long-term objectives
“(1) The fiscal strategy report must—
“(a) state the Government's long-term objectives for fiscal policy and, in particular, for the following variables:
“(i) total operating expenses:
“(ii) total operating revenues:
“(iii) the balance between total operating expenses and total operating revenues:
“(iv) the level of total debt:
“(v) the level of total net worth; and
“(b) explain how those long-term objectives accord with the principles of responsible fiscal management; and
“(c) state the period to which those long-term objectives relate (which must be a period of 10 or more consecutive financial years commencing with the financial year to which the fiscal strategy report relates).
“(2) The fiscal strategy report must also—
“(a) assess the consistency of the long-term objectives referred to in subsection (1)(a)—
“(i) with the long-term objectives in the most recent fiscal strategy report; or
“(ii) if the long-term objectives in the most recent fiscal strategy report were amended in the budget policy statement most recently prepared under section 26M, with the long-term objectives stated in the statement; and
“(b) if the long-term objectives referred to in subsection (1)(a) are not consistent with the long-term objectives in the most recent fiscal strategy report or in the budget policy statement most recently prepared under section 26M, justify the departure of the long-term objectives referred to in subsection (1)(a) from the long-term objectives in the most recent fiscal strategy report or in the statement.
“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.
“26L Contents of fiscal strategy report: other matters
“(1) The fiscal strategy report must include—
“(a) an assessment of the extent to which the economic and fiscal update prepared under section 26O(1) is consistent with the short-term intentions referred to in section 26K(1); and
“(b) if the economic and fiscal update departs from those short-term intentions, an explanation of the reasons for the departure.
“(2) The fiscal strategy report must also include—
“(a) scenarios that—
“(i) contain projections of trends in the variables specified in section 26J(1)(a) (which projections must illustrate, for stated significant assumptions, likely future progress towards achieving the long-term objectives referred to in that section); and
“(ii) explain the reasons for any significant differences from previous scenarios; and
“(b) an assessment of the consistency of the scenarios with the long-term objectives referred to in section 26J(1)(a); and
“(c) if the scenarios depart from the long-term objectives referred to in section 26J(1)(a), an explanation of the reasons for the departure.
“(3) The projections required by subsection (2)(a)(i) must relate to the period to which the long-term objectives referred to in section 26J(1)(a) relate (which must be a period of 10 or more consecutive financial years commencing with the financial year to which the fiscal strategy report relates).
“Budget policy statement
“26M Budget policy statement
“(1) The Minister must present to the House of Representatives a budget policy statement—
“(a) not later than 31 March in each financial year; or
“(b) if Parliament is not in session on 31 March and a budget policy statement has not been presented in that financial year, as soon as possible after the commencement of the next session of Parliament.
“(2) The budget policy statement must, for the financial year commencing on 1 July after the statement is presented, state the broad strategic priorities by which the Government will be guided in preparing the Budget for that financial year, including—
“(a) the overarching policy goals that will guide the Government's Budget decisions; and
“(b) the policy areas that the Government will focus on in that year; and
“(c) how the Budget for that year accords with the short-term intentions referred to in the most recent fiscal strategy report or the amended short-term intentions under subsection (3).
“(3) The budget policy statement must,—
“(a) if the long-term objectives referred to in section 26J(1)(a) have changed from those stated in the most recent fiscal strategy report, indicate those amended long-term objectives and explain how they accord with the principles of responsible fiscal management; and
“(b) if the short-term intentions referred to in section 26K(1) have changed from those indicated in the most recent fiscal strategy report, indicate those amended short-term intentions and explain how they accord with the principles of responsible fiscal management and the long-term objectives in the most recent fiscal strategy report or the amended long-term objectives under paragraph (a).
“Statement on long-term fiscal position
“26N Statement on long-term fiscal position
“(1) Before the end of the second financial year after the commencement of this section and then at intervals not exceeding 4 years,—
“(a) the Treasury must prepare a statement on the long-term fiscal position; and
“(b) the Minister must present each statement to the House of Representatives.
“(2) The statement must—
“(a) relate to a period of at least 40 consecutive financial years commencing with the financial year in which the statement is prepared; and
“(b) be accompanied by—
“(i) a statement of responsibility signed by the Secretary stating that the Treasury has, in preparing the statement under subsection (1), used its best professional judgments about the risks and the outlook; and
“(ii) a statement of all significant assumptions underlying any projections included in the statement under subsection (1).
“Economic and fiscal updates
“26O Economic and fiscal update
“(1) The Minister must, in accordance with subsection (2), present to the House of Representatives an economic and fiscal update prepared by the Treasury for each financial year.
“(2) The Minister must present the economic and fiscal update immediately after he or she has delivered the Budget for the financial year to which the update relates.
“(3) The update must—
“(a) contain economic and fiscal forecasts that relate to—
“(i) the financial year to which the update relates; and
“(ii) each of the next 2 financial years; and
“(b) contain a statement of tax policy changes in accordance with section 26R; and
“(c) be accompanied by a statement of responsibility.
“(4) The update must state—
“(a) the day on which the contents of the update were finalised; or
“(b) the days on which the contents of different specified aspects of the update were finalised.
“26P Economic forecasts
“(1) The economic forecasts contained in the economic and fiscal update prepared under section 26O must, for each of the 3 financial years to which they relate, include forecasts of movements in New Zealand's—
“(a) gross domestic product (including the major components of gross domestic product):
“(b) consumer prices:
“(c) unemployment and employment:
“(d) current account position of the balance of payments.
“(2) The economic forecasts must also include a statement of all significant assumptions underlying the forecasts.
“26Q Fiscal forecasts
“(1) The fiscal forecasts contained in the economic and fiscal update prepared under section 26O must, for each of the 3 financial years to which they relate, include forecast financial statements.
“(2) In addition to the forecast financial statements required by subsection (1), the fiscal forecasts must include—
“(a) a statement of borrowings that reflects the forecast borrowing activities for each of those financial years:
“(b) any other statements that are necessary to fairly reflect—
“(i) the forecast financial operations for each of those financial years; and
“(ii) the forecast financial position at the end of each of those financial years.
“(3) The fiscal forecasts must also include—
“(a) a statement of commitments from the most recent monthly financial statements of the Government that are required to be prepared under section 31A; and
“(b) a statement of specific fiscal risks of the Government as at the day on which the forecast financial statements are finalised—
“(i) that sets out specific fiscal risks that relate to—
“(A) the Government decisions and other circumstances required by section 26U to be incorporated in the economic and fiscal update prepared under section 26O; and
“(B) any other contingent liabilities (including any guarantees or indemnities given under any Act); and
“(ii) that discloses the rules used to determine what is and is not a fiscal risk; and
“(c) a statement of all significant accounting policies (including any changes from the accounting policies contained in the annual financial statements of the Government most recently presented to the House of Representatives or published under section 31); and
“(d) in relation to each forecast financial statement required by subsections (1) and (2)(a) and, if appropriate, subsection (2)(b),—
“(i) comparative budgeted and estimated actual figures for the financial year immediately before the first of the financial years to which the fiscal forecasts relate; and
“(ii) comparative actual figures for the financial year that is 2 years before the first of the financial years to which the fiscal forecasts relate; and
“(e) a statement of all significant assumptions underlying the fiscal forecasts; and
“(f) a statement that shows the sensitivity of the fiscal aggregates to changes in economic conditions.
“(4) The fiscal forecasts must be for the same reporting entity as the annual financial statements of the Government to be prepared under section 27 for the first of the financial years to which the fiscal forecasts relate.
“26R Annual statement of tax policy changes
“(1) The statement of tax policy changes contained in the economic and fiscal update prepared under section 26O must set out—
“(a) a summary and quantitative assessment of tax policy changes that have resulted in a material change to the tax revenue forecasts for the financial year to which the update relates and at least the next 2 financial years; and
“(b) the basis for determining whether or not a particular tax policy change should be included in that summary.
“(2) In this section, tax policy change includes—
“(a) a change in tax legislation that has been enacted since the most recent statement of tax policy changes prepared under this section; and
“(b) a proposed change in tax legislation that has been approved by the Government (whether set out in a Bill that has been introduced into the House of Representatives or otherwise).
“26S Half-year economic and fiscal update
“(1) The Minister must, not earlier than 1 November nor later than 31 December in each financial year,—
“(a) arrange to be published a half-year economic and fiscal update prepared by the Treasury; and
“(b) present the update to the House of Representatives.
“(2) However, if a half-year economic and fiscal update has not been presented by 31 December in a financial year because Parliament has not been in session since the date that the update was published, the Minister must present the half-year economic and fiscal update as soon as possible after the next meeting of Parliament.
“(3) The half-year economic and fiscal update must—
“(a) include the information required by sections 26O(3)(a) and (4), 26P, 26Q, and 26U to be included in the economic and fiscal update prepared under section 26O, except that—
“(i) the reference to estimated actual figures in section 26Q(3)(d)(i) must be read as if it were a reference to actual figures; and
“(ii) the actual figures required by section 26Q(3)(d)(ii) are not required; and
“(b) be accompanied by a statement of responsibility.
“(4) However, the Minister is not required to arrange the publication of the half-year economic and fiscal update in any financial year if, in the period of that financial year beginning on 1 October and ending on 31 December, a pre-election economic and fiscal update—
“(a) has been published under section 26T; or
“(b) is required to be published under that section.
“26T Pre-election economic and fiscal update
“(1) The Minister must, not earlier than 30 working days, nor later than 20 working days, before the day appointed as polling day in relation to any general election of members of the House of Representatives, arrange to be published a pre-election economic and fiscal update prepared by the Treasury.
“(2) The pre-election economic and fiscal update must,—
“(a) except as provided in subsection (3), include the information required by sections 26O(3)(a) and (4), 26P, 26Q, and 26U to be included in the economic and fiscal update prepared under section 26O; and
“(b) be accompanied by a statement of responsibility.
“(3) If, before the day on which a pre-election economic and fiscal update is required to be published under this section, the annual financial statements of the Government for the financial year immediately before the first of the financial years to which the fiscal forecasts relate have been presented to the House of Representatives or published under section 31,—
“(a) the reference to estimated actual figures in section 26Q(3)(d)(i) must be read as if it were a reference to actual figures; and
“(b) the actual figures required by section 26Q(3)(d)(ii) are not required.
“(4) If the day of the dissolution of Parliament is less than 30 working days before the day appointed as polling day in relation to the general election of members of the House of Representatives, the Minister must arrange for the pre-election economic and fiscal update required under this section to be published not later than 10 working days after the day of the dissolution of Parliament.
“(5) The Minister must, as soon as possible after the next meeting of Parliament, present to the House of Representatives a copy of the update published under this section.
“Disclosure requirements for economic and fiscal updates
“26U Disclosure of policy decisions and other circumstances that may influence future fiscal situation
“(1) An economic and fiscal update prepared under section 26O or section 26S or section 26T must incorporate, to the fullest extent possible that is consistent with section 26V, all Government decisions and all other circumstances that may have a material effect on the fiscal and economic outlook.
“(2) If the fiscal implications of Government decisions and other circumstances referred to in subsection (1) can be quantified for particular years with reasonable certainty by the day on which the forecast financial statements are finalised, the quantified fiscal implications of those Government decisions and other circumstances must be included in the forecast financial statements.
“(3) If the fiscal implications of Government decisions and other circumstances referred to in subsection (1) cannot be quantified for or assigned to particular years with reasonable certainty by the day on which the forecast financial statements are finalised, those Government decisions and other circumstances must be disclosed in the statement of specific fiscal risks of the Government required by section 26Q(3)(b).
“26V Limits on disclosure requirements
Sections 26Q(2)(b) and 26U(1) do not apply to a decision, circumstance, or statement if the Minister, together with any other Minister designated for the purpose of this section, determines that—
“(a) to incorporate that decision, circumstance, or statement in an economic and fiscal update is likely—
“(i) to prejudice the substantial economic interests of New Zealand; or
“(ii) to prejudice the security or defence of New Zealand or the international relations of the Government; or
“(iii) to compromise the Government in a material way in negotiation, litigation, or commercial activity; or
“(iv) to result in material loss of value to the Government; and
“(b) there is no reasonable or prudent way the Government can avoid this prejudice, compromise, or material loss,—
“(i) in the case of a circumstance, by making a decision before the day on which the forecast financial statements are finalised; or
“(ii) in the case of a decision or circumstance, by incorporating in the update the fiscal implications of that decision or circumstance, or the nature of that decision or circumstance, but without reference to its fiscal implications; or
“(iii) in the case of a statement, by incorporating that statement in the update.
“Statement of responsibility
“26W Requirements for statement of responsibility
“(1) The statement of responsibility required by section 26O or section 26S or section 26T must be signed by—
“(a) the Minister; and
“(b) any other Minister designated for all or any of the purposes of subsection (2)(a) to (c); and
“(c) the Secretary.
“(2) The statement of responsibility must comprise—
“(a) a statement by the Minister, and any other Minister designated for the purpose of this paragraph, that the following matters have been communicated to the Secretary:
“(i) all policy decisions with material economic or fiscal implications that the Government has made before the day on which the contents of an economic and fiscal update or of the relevant aspect of the update were finalised; and
“(ii) all other circumstances with material economic or fiscal implications of which the Minister and that other Minister (if any) were aware before that day; and
“(b) a statement by the Secretary that the Treasury has supplied to the Minister, and to any other Minister designated for the purpose of this paragraph, an economic and fiscal update—
“(i) that incorporates the fiscal and economic implications of the decisions and circumstances referred to in paragraph (a); but
“(ii) that does not incorporate any decisions, circumstances, or statements that the Minister and any other Minister designated for the purpose of section 26V have determined under that section should not be incorporated in that update; and
“(c) a statement of the responsibility of the Minister, and of any other Minister designated for all or any of the purposes of this paragraph and paragraphs (a) and (b),—
“(i) for the integrity of the disclosures contained in the update; and
“(ii) for the consistency with the requirements of this Part of the information contained in the update; and
“(iii) for the omission from the update under section 26V of any decision, circumstance, or statement.
“(3) The statement referred to in subsection (2)(b) must be accompanied by a statement that the economic and fiscal update has been prepared by the Treasury—
“(a) using its best professional judgments; and
“(b) on the basis of economic and fiscal information available to it before the day on which the contents of the update or the relevant aspect of the update were finalised.
“Miscellaneous
“26X Certain statements and updates may be published in advance of presentation to House of Representatives
The Minister may arrange for the following to be published in advance of their being presented to the House of Representatives:
“(a) a budget policy statement under section 26M(1):
“(b) a half-year economic and fiscal update under section 26S(1):
“(c) a pre-election economic and fiscal update under section 26T(1).
“26Y Notification and availability of reports, statements, or updates
“(1) The Minister or, as the case may be, the Secretary must arrange to be published in the Gazette a notice about each of the following:
“(a) a fiscal strategy report presented to the House of Representatives under section 26I(1):
“(b) a budget policy statement presented to the House of Representatives under section 26M(1) or published under section 26X:
“(c) a statement on the long-term fiscal position presented to the House of Representatives under section 26N(l):
“(d) an economic and fiscal update presented to the House of Representatives under section 26O(1):
“(e) a half-year economic and fiscal update presented to the House of Representatives under section 26S(1) or published under section 26X:
“(f) a pre-election economic and fiscal update published under section 26T(1).
“(2) The notice must—
“(a) indicate where copies of the report, statement, or update are available—
“(i) for inspection by members of the public free of charge at the place where the notice indicated they would be available; and
“(ii) for purchase by members of the public at the place where the notice indicated they would be available; and
“(b) in the case of a statement or update referred to in section 26X, indicate whether the statement or update has been published in advance of being presented to the House of Representatives.
“(3) The Secretary must, for at least 6 months after the date of the publication of the notice, arrange for copies of the report, statement, or update referred to in that notice to be available—
“(a) for inspection by members of the public free of charge; and
“(b) for purchase by members of the public.
“26Z Power of Secretary to obtain information
“(1) The Secretary may request any department or any entity referred to in section 27(3)(a) to (f), or any entity that manages an asset or liability of the Government, to supply to the Secretary any information that is necessary to enable the preparation of any fiscal forecasts and projections referred to in sections 26L, 26N, 26O, 26Q, 26S, and 26T.
“(2) A request under subsection (1)—
“(a) must be in writing; and
“(b) may state the date by which, and the manner in which, the information requested must be provided.
“(3) If a date is stated under subsection (2)(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives, or for publishing, the report or update for which the information is being requested.
“(4) A department or entity to whom the request is made must comply with the request.”