Cross portfolio

Agency Banking Incentive Scheme - discontinuation

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
All Agencies	-	-	-	-

Following the Government's agreement to the recommendations of the Budget Estimates and Framework Review, the Agency Banking Incentive Scheme will be discontinued. Agencies will be funded on the basis of an as needs cash draw-down model from 1 July 2003. Under this system, agencies will not be required to hold or manage large cash balances and cash management decisions will be made centrally.

Budget estimates - enhanced quality and timeliness

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
All Agencies	1.1	0.7	0.7	0.7

The Budget Estimates and Framework Review (the Review) was a thorough review of the Budget estimates and advice system. The recommendations of the Review seek to improve the accuracy, responsiveness and effectiveness of the Commonwealth's budget estimates and framework system. The Government endorsed the recommendations of the Review in late 2002 and agreed that agencies could seek additional resourcing required to implement the recommendations of the Review.

The Government will provide funding of $3.2 million over four years to the Foreign Affairs and Trade and Employment and Workplace Relations portfolios to improve the accuracy, responsiveness and effectiveness of their contribution to the Commonwealth's budget estimates and framework system and to assist agencies to drive improved financial management and reporting within their organisations.

Provision has been made in the Contingency Reserve for funding for other agencies and bids from those agencies will be considered later in 2003.

See also the related capital measure titled Budget estimates - enhanced quality and timeliness in the Cross Portfolio section.

---