departments are expected to generate efficiency gains to offset any unexpected cost increases). Projections in the internal ARLU update are presented over a five year period, whilst the fiscal projections presented in the budget are identified over a rolling two year planning horizon. The ARLU process is a technical exercise that updates the reference levels it is not intended to consider past performance and the results of programs and nor is it a – – mechanism for departments to request new funding. Systematic review of the effectiveness of ongoing programs has only been implemented in the last decade or so. Table 5.1 MTEF Budget and Forward Year Cost Estimate Practices: Summary of Responses Australia Austria Canada The Netherlands Yes Yes Yes Yes Is the MTEF t + 1 becomes 4 year budget t + 1 becomes 4 year budget ‘rolling’? starting point for ceiling starting point for ceiling budget, new t + 3 New MTEF has t + budget, new t + 2 New MTEF has t + added 4 added, with t + 3 added 4 added, with t + 3 as starting point as starting point Are there Yes No Yes No data central Standardized RIA (Regulatory Costing Guide and Costing Model for Impact Assessment) Guide to Preparing guidelines for program New Policy new proposals but Treasury Board costings for Proposals not cost specific Submissions budget proposals? Proposals are not ‘New Initiative’ Program and/or based but What is the basis ‘program’ law or project based for proposals, ‘measure’ (initiative i.e. program, related to a sectoral etc. program) Is there a Yes No distinction Yes No data Separate between capital and No data distinction between appropriations NPPs recurrent recurrent and identify recurrent and capital capital? Do the latter estimate separately recurrent costs Capital proposals estimate of capital expenditure? costs Do guidelines No Yes No No data treat entitlement Entitlement MTEF distinguishes programs ‘Statutory’ programs specified fixed programs ‘nominal’ differently? by separate ceiling (75%) and legislation ceiling – ‘special ‘variable’ (25%) for appropriations’ entitlement activities Are there No No No No data separate Standardised costing RIA is required for Standardised costing guidelines methods that apply all new laws and methods that apply estimating to budget and projects; however, to budget and forward years directly linked forward years program costs ‘not to MTEF or the over the budget and forward annual budget’
departments are expected to generate efficiency gains to offset any unexpected cost increases). Projections in the internal ARLU update are presented over a five year period, whilst the fiscal projections presented in the budget are identified over a rolling two year planning horizon. The ARLU process is a technical exercise that updates the reference levels – it is not intended to consider past performance and the results of programs – and nor is it a mechanism for departments to request new funding. Systematic review of the effectiveness of ongoing programs has only been implemented in the last decade or so. Table 5.1 MTEF Budget and Forward Year Cost Estimate Practices: Summary of Responses Australia Austria Canada The Netherlands Is the MTEF ‘rolling’? Yes t + 1 becomes starting point for budget, new t + 3 added Yes 4 year budget ceiling New MTEF has t + 4 added, with t + 3 as starting point Yes t + 1 becomes starting point for budget, new t + 2 added Yes 4 year budget ceiling New MTEF has t + 4 added, with t + 3 as starting point Are there central guidelines for program costings for budget proposals? What is the basis for proposals, i.e. program, sectoral etc. Yes Standardized Costing Model for New Policy Proposals Program and/or ‘measure’ (initiative related to a program) No RIA (Regulatory Impact Assessment) new proposals but not cost specific Proposals are not ‘program’ based but law or project based Yes Costing Guide and Guide to Preparing Treasury Board Submissions ‘New Initiative’ No data Is there a distinction between recurrent and capital? Do the latter estimate recurrent costs of capital expenditure? Yes Separate appropriations NPPs identify recurrent and capital separately Capital proposals estimate costs No distinction between capital and recurrent Yes No data No data Do guidelines treat entitlement programs differently? No Entitlement programs specified by separate legislation – ‘special appropriations’ Yes MTEF distinguishes ‘nominal’ fixed ceiling (75%) and ‘variable’ ceiling (25%) for entitlement activities No ‘Statutory’ programs No data Are there separate guidelines estimating program costs over the budget and forward No Standardised costing methods that apply to budget and forward years No RIA is required for all new laws and projects; however, ‘not directly linked to MTEF or the annual budget’ No Standardised costing methods that apply to budget and forward years No data
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