years? Is this applied by centre, agencies or both? What are the Construction rules Not elaborated No data No data policy Economic forecasts key components (‘no change’ of the basis) provided by forecasting Treasury Economic independent body Forecasts (e.g. (WIFO) methodologies - economic annual growth) are parameters for budget forecasts year and outyear 1 - estimate construction (cyclical variation in rules policy economic activity) (‘no and for projections change’) - cost escalation outyears 2 and 3 factors long term averages) Do forecasting Yes No No data No data Budget measures RIA requirements methodologies – differentiate new or changed apply to new between policy policy spending only Parameter changes and parameter – changes? variations to economic parameters As we have noted, new policy initiatives are dealt with in a separate process. When funding is required outside the reference levels, departments will request inclusion of the additional funding in the Estimates through a Treasury Board Submission. These include submissions for funding new programs that Cabinet has already approved, or that seek additional funding for existing programs. Any adjustments are then included in the next eligible supply period and updates to reference levels are included in the next eligible ARLU exercise. The Estimates documents distinguish between new and existing policies, with new policies being highlighted. Forecasts of expenditures with existing statutory authority are developed for inclusion with the ARLU process and presentation in the Main Estimates and the Reports on Plans and Priorities (RPPs). The forecasts are based on the most recent demographic, economic and/or demand information. Significant changes in forecasts during a fiscal year may be presented in Supplementary Estimates One final issue is the extent to which recurrent and capital expenditure is distinguished in the MTEF budget formulation process, and whether this is reflected in requirements to identify
years? Is this applied by centre, agencies or both? What are the key components of the forecasting methodologies - economic parameters - estimate construction rules (‘no policy change’) - cost escalation factors Construction rules (‘no policy change’ basis) Treasury Economic Forecasts (e.g. annual growth) are forecasts for budget year and outyear 1 (cyclical variation in economic activity) and projections for outyears 2 and 3 long term averages) Not elaborated Economic forecasts provided by independent body (WIFO) No data No data Do forecasting methodologies differentiate between policy and parameter changes? Yes Budget measures – new or changed policy Parameter changes – variations to economic parameters No RIA requirements apply to new spending only No data No data As we have noted, new policy initiatives are dealt with in a separate process. When funding is required outside the reference levels, departments will request inclusion of the additional funding in the Estimates through a Treasury Board Submission. These include submissions for funding new programs that Cabinet has already approved, or that seek additional funding for existing programs. Any adjustments are then included in the next eligible supply period and updates to reference levels are included in the next eligible ARLU exercise. The Estimates documents distinguish between new and existing policies, with new policies being highlighted. Forecasts of expenditures with existing statutory authority are developed for inclusion with the ARLU process and presentation in the Main Estimates and the Reports on Plans and Priorities (RPPs). The forecasts are based on the most recent demographic, economic and/or demand information. Significant changes in forecasts during a fiscal year may be presented in Supplementary Estimates One final issue is the extent to which recurrent and capital expenditure is distinguished in the MTEF budget formulation process, and whether this is reflected in requirements to identify