The Department of Treasury and Finance supports the Treasurer in producing the state budget.
Each cycle lasts 18 months and involves:
- publishing the budget papers around May or June
- publishing the mid-year budget review around December
- publishing the final budget outcome and consolidated financial report following the end of the relevant year.
Preparation of the budget commences in December with consideration of the overall budget strategy and timelines. In February, departments submit their proposed budget updates and new policy proposals.
Each minister sits down with the Treasurer to discuss their proposed budget priorities and possible policy responses. These meetings are referred to as the ‘budget bilaterals’.
The Budget Cabinet Committee (BCC), of which the Treasurer is a member, considers all of the budget requests from departments. The BCC then provides a draft budget to Cabinet for its consideration and final approval.
Mid-year budget review
Preparation of the mid-year budget review commences in August. Departments submit updated budget proposals for that year.
Submitted proposals are considered by the Treasurer who then makes a recommendation to Cabinet for final approval.
Final budget outcome and consolidated financial report
Preparation of the Final Budget Outcome and Consolidated Financial Report commences in August after agencies have submitted their financial statements to the Auditor-General.
The final budget outcome is signed off by the Treasurer.
The consolidated financial report is prepared in line with the Australian Accounting Standards.
Before publishing, the Auditor-General receives a copy and provides comment to the Department of Treasury and Finance. The Auditor-General’s observations are printed in the consolidated financial report.
Regular monitoring is a key component of the government’s financial management arrangements.
Monitoring encompasses agencies reporting on how they're meeting their budget targets.
In addition, agencies provide monitoring to the Department of Treasury and Finance on their progress in achieving their budget measures, information on delivery of capital projects and on employee (FTE) levels.