There have always been a lot of rules that guide the way that governments plan and report their proposed and actual spending.
The current approach possibly dates back to 1989, with the instigation of Labour’s Public Finance Act (PFA), and then especially National’s slightly more recent Fiscal Responsibility Act of 1994. The highlights of those two Acts now exist together, and tinkering continues.
Two of the overarching themes of that law are: declare a plan, and avoid surprises. Both messages are satisfied in the annual Budget Policy Statement (required by the PFA), which the Government released in late March, outlining the Government’s goals, objectives and strategies. Since then the Finance and Expenditure Committee has been examining it.
The Budget Policy Statement achieves something else as well - an opportunity for budget feedback from the public.
Dr Rebekah Graham from Parents of Vision Impaired New Zealand gives evidence to the Finance and Expenditure Committee. Photo: VNP / Phil Smith
Unless the House is sitting under urgency, proposed new laws usually spend time being examined by a select committee. At that point the public is usually given a chance to weigh in on the plan.
But this is not true of budgets. Appropriations bills do go to Select Committee, but not for public input. Instead, there are extensive hearings when the committees themselves question the ministers about their plans.
The main chance the public gets to input into the strategic direction of a new budget is at the hearings held into the Budget Policy Statement, and yes, that’s prior to the budget’s release.
That timing means it’s more of an opportunity for the public to pitch their own ideas for a budget, and respond to the broad budget objectives outlined in the Budget Policy Statement, rather than budget specifics.
ACT MP Todd Stephenson, and National Party MPs David McLeod and Nancy Lu listen to evidence in select committee. Photo: VNP / Phil Smith
I’ve listened to some of the submissions this year. There have been a wide range of both submitters and topics. The budget covers pretty much everything under the sun and therefore so too does the advice. Some submitters have come from organisations and lobby groups from across the political spectrum; others were from private individuals.
I’m pretty sure that all the submitters are aware that, disasters notwithstanding, the budget is already set in stone, and so their submissions won’t effect change - but regardless of that, this is not just an exercise in shouting at clouds.
It is a chance to raise issues, voice opinions and engage MPs in debate about different approaches and ideas. As well as being a key aspect of New Zealand democracy, that kind of personal input into the halls of power is always a worthy undertaking.
The budget itself will be revealed in three weeks on May 30th.
