Department of Management and Budget

Full description

Establishment and Functions

The Department of Management and Budget was established in 1982, assuming responsibility for functions previously administered by the Treasury (VA 865). The Victoria Government Gazette No.102, 13 October 1982, provides the following listing of functional responsibilities:

* to participate in the development of advice to Government on policies and priorities and to manage the budgetary process to ensure that the allocation of resources is integrated with both the programme priorities and the economic goals of the Government;

* to provide a focus for the development of improved approaches to financial management throughout public administration in Victoria;

* to develop a strengthened financial budgeting and control system which includes departments and public authorities, allows decision-making freedom for agency management, embraces all resource requirements, is linked to the programme priorities of Government and is monitored through a management control system;

* to advise and assist agencies in matters of resource policy and resource management;

* to provide advice to Government on various revenue options, taxes, stamp duties, charges and royalties, and to manage the collection of such revenues;

* to maintain the liquidity of overall Government operations, to monitor detailed cash flows throughout the year, and to advise Government of any necessary action;

* to manage centralised Government investments in accordance with overall Government policies and priorities;

* to advise on and, where necessary, manage the financial assets of both departments and public authorities so as to protect the interests of, and maximise the return to the State;

* to ensure that Government expenditures are properly authorized by Parliament and reported to Parliament;

* to provide advice to Government on the resource impact of various proposals, including proposals considered off-budget;

* to co-ordinate the financial management, economic policy and budgetary requirements of Government. To advise the Government, through the Economic Committee of Cabinet, on short, medium and long term economic and financial objectives and priorities and continuously evaluate and review these objectives and priorities. To monitor and co-ordinate the efforts of departments and public authorities to implement such policies;

* to set budgetary parameters and financial and economic management standards for departments and public authorities and continuously evaluate and review project, program and management effectiveness;

* to set accounting standards to be met by both departments and public authorities;

* to monitor performance against budget, and program achievement. To report to Government on the performance of agencies in the delivery of agreed programs within agreed budgets; and

* to advise Government on the financial and economic aspects of inter-governmental relations and to ensure that such matters are fully integrated with the budgetary process.

Land Monitoring

From 1978/79 until 1985 the Department of Property and Services (VA 430) had responsibility for the function of monitoring government land sales. This function was inherited by the Treasurer in 1985 and was the responsibility of the Land Monitoring Division of the Department of Management and Budget (VA 1022) until it was transferred to the Department of Planning and Urban Growth (VA 3006) in early 1990. In 1991 the function was transferred back to the Department of the Treasury (VA 3007) and remained with this agency until it was transferred to the Department of Finance (VA 3016) after the October 1992 election. In mid 1993 responsibility for land monitoring was transferred to the Department of Planning and Development (VA 3094).

Background

All purchases and sales of properties by Government of $100,000 or more require Land Monitoring approval to ensure that all Government requirements under the Land Acquisition and Compensation Act 1986 in relation to property transactions are met. The function was established to provide Government with an independent safeguard against further land dealings of the type criticised at the Gowans Board of Enquiry and later at the Frost Royal Commission. This function is completely separate from the budgeting and planning functions in relation to government real estate. The function encompasses:

* monitoring all purchases and sales of properties by Government of $100,000 including assessing submissions from agencies and monitoring of auctions.

* the development of policies for the management of government real estate
* assisting in identifying properties that are surplus to current needs. Administering the Government's decision in relation to the disposal of surplus railway land.

Associated Authorities

A number of large statutory authorities with finance authorities are closely associated with the Department as part of the Treasurer's portfolio, including the State Bank (VA 1041), State Insurance Office (VA 1033), the Stamp Duties Office, State Tender Board and the Rural Finance Corporation (VA 2985). Authorities responsible for superannuation and pension schemes for public servants, railway employees, teachers and other government employees are also grouped in the Treasurer's portfolio together with the State Taxation Office and agencies responsible for workers compensation, statistics and actuarial functions and land monitoring. From 1985 to 1988 the Motor Accidents Board (VA 1055), from 1986 Traffic Accident Commission (VA 2892), was also part of the Treasurer's portfolio and hence was closely associated with the Department. The registration of friendly societies (1982-1987) and of real estate agents has also been associated with the Department.

Location of Records

Significant records of the Department's predecessor, the Department of the Treasurer (VA 865) are held at Public Record Office Victoria.

See also List of Holdings 2nd edition 1985, section 3.22.1