Imprest supply is the statutory mechanism that allows Parliament to provide the Government with the authority to—

• incur expenses and capital expenditure in advance of appropriation in an Appropriation Act; and

• make capital injections in advance of authorisation under an Appropriation Act.

This Imprest Supply Bill provides the sole financial authority from the start of the 2017/18 financial year until the Appropriation (2017/18 Estimates) Bill is passed.

The financial authorities provided in this Bill are repealed on the coming into force of the Appropriation (2017/18 Estimates) Bill. The rest of this Bill is repealed on the close of 30 June 2018. Appropriations for expenses and capital expenditure incurred, and authority for capital injections made, under the authority of this Bill must be sought in an Appropriation Act that comes into force on or before 30 June 2018. If this is not done, the expenses, capital expenditure, and capital injections will require validation in an Appropriation (Confirmation and Validation) Act in accordance with sections 26C and 26CA of the Public Finance Act 1989.

In this Bill, imprest is calculated separately for expenses and capital expenditure, subject to 2 exceptions. The imprest sought for expenses in this Bill covers the following capital expenditure to be incurred in advance of an appropriation that may include both expenses and capital expenditure:

• capital expenditure to be incurred by an intelligence and security department; and

• non-departmental capital expenditure to be incurred in advance of a multi-category appropriation.

Accordingly, the capital expenditure described above is not covered by the imprest sought for capital expenditure in this Bill.

The amounts of imprest for expenses, capital expenditure, and capital injections are calculated on the basis of one-sixth (2 months’ worth) of the relevant annual appropriations and authorisations for capital injections sought in the Appropriation (2017/18 Estimates) Bill, and a general contingency provision to cover risks that may eventuate. The amounts of imprest for expenses and capital expenditure are also adjusted for uneven timing and include an allowance for new multi-year appropriations.

Imprest sought for expenses in this Bill covers the following appropriations:

• appropriations for the following categories of expenses:

  • output expenses:

  • benefits or related expenses:

  • other expenses:

• appropriations for expenses and capital expenditure to be incurred by an intelligence and security department:

• multi-category appropriations.

The authority sought this year for expenses includes upfront funding for Vote Arts, Culture and Heritage, Vote Defence, Vote Education, Vote Environment, Vote Foreign Affairs and Trade, Vote Justice, Vote Lands, Vote Sport and Recreation, and Vote Vulnerable Children, Oranga Tamariki.

The amount of authority for expenses has been calculated as follows:

Imprest sought for capital expenditure in this Bill covers the appropriations for capital expenditure. It does not cover capital expenditure included in the definition of expenses for the purposes of this Bill (see clause 5(1)).

The authority sought this year for capital expenditure includes upfront funding for Vote Defence and Vote Lands.

The amount of authority for capital expenditure has been calculated as follows:

Imprest sought for capital injections covers authorisations for capital injections to be made to departments (other than intelligence and security departments) or Offices of Parliament. This Bill does not authorise imprest supply for capital injections to intelligence and security departments because section 12A(1) of the Public Finance Act 1989 does not apply to intelligence and security departments.

The amount of authority for capital injections has been calculated as follows:

A departmental disclosure statement is not required for this Bill.