Appendix B
Assessment against the fiscal target
The table below shows the net budget impact of policy decisions taken since the February 2009 Updated Economic and Fiscal Outlook. In this Budget, the Government has fully offset all new spending in 2012‑13.
In assessing performance against the fiscal strategy, the total effect of policy decisions is adjusted to account for the impact of the changed implementation arrangements for Carbon Pollution Reduction Scheme (CPRS) and for policy decisions that have previously been provided for in the contingency reserve.
In cash terms, the revised CPRS implementation package adversely affects the Budget in 2009‑10, 2010‑11 and 2011‑12, and improves the Budget in 2012‑13. This reflects the temporary timing divergence between CPRS expenditures and revenues during the transition period. In assessing performance against the fiscal target, and its contribution to medium term sustainability, these temporary cash effects are disregarded.
In the 2008‑09 Budget, provision was made for a number of programs that were reasonably expected to affect the budget estimates. For example, a provision of around $12.5 billion was put aside for nation building infrastructure. Delivery of these programs, which have previously been provided for, does not increase expected spending and accordingly the total effect of policy decisions should be adjusted for contingency reserve offsets.
