The fifth of May is the day after the First Session of the General Discussion (AGM) of a Commons Select Committee (CDV). This is the committee that assesses the budget. The purpose of this discussion is to establish a draft budget for the coming financial year. This budget is then referred to as the draft budget. When the final budget is agreed and approved by the committee, it becomes the official budget.
The fifth of May also marks the start of the second half of the financial year. There are many other dates that are used to determine the start and end of the financial year. In many cases, an updated budget is released every month. The official draft budget is released two weeks after the submission of the budget to the Select Committee on Budget. The key document that contains the key elements of the budget are called the budget speech and the budget deed. These documents are then distributed to the MP’s for vote.
Once the budget is published, members of the Select Committee on Budget receive one copy of the draft budget. An additional copy can be sent to them by post. The budget is usually available from April to September. Members of the committee have three months during which to study and scrutinize the draft budget. After carefully examining the budget, the members of the committee can make a decision whether the budget is suitable for the government.
Once the budget is approved, the Department of Finance produces a financial year overview showing the allocations made in the budget. The intention behind the formal introduction of the budget is to provide the public with a general view of how the finances will operate for the coming year. A final budget report can then be tabled in the House of Representatives or the Senate at the end of the financial year. The final budget is then implemented in the Government House or the Senate after the end of the fiscal year.
A draft budget does not include any Supplementary Economic Estimates (EUR). Draft budgets are recommended to be two years in length. Draft budgets are prepared once the full assessment of the financial year has been completed. Draft budgets are prepared based on assumptions about the revenue assumptions, expenditure assumptions and the financial year end target. Actual data will vary depending on the actual performance of the economy.
Once a final budget has been tabled in the House of Representatives or the Senate, the government must submit their annual financial report. The final budget will contain all financial information that the government has released in the budget submission. This includes the final report of the OAGDI report, the Summary of Changes in Annual Operating Procedures and the Actuals section. The purpose of this section is to compare the final report to the forecasts in the financial year financial reports.
An appendix is provided to the final budget report that contains further explanatory material to explain the concepts and aspects of the budget. It also contains a note page for the objections and suggestions that have been raised in response to the budget report. These detailed explanatory notes are extremely valuable for understanding how the budget was prepared and how it compares with other budgets. The members of the house will want to understand what is included in the budget, how these items were measured and whether these were taken into account in the budget submission or not. The members will also want to compare the final budget with the earlier versions of budget reports to see if the differences imply that the budget is a reasonable one.
The members of the house will want to review the budget report and consider whether or not they agree with the recommendations contained therein. If the members do not agree with the recommendations, then a motion to report budget negation will be put forth. It is recommended that this motion be passed by a majority of the entire house. Then the budget procedure for debate and approval of the budget report will begin.