Explanatory Memorandum

Budget (No. 2) Act (Northern Ireland) 2016

2016 CHAPTER 30

29 July 2016

Commentary on Sections

Section 1: Issue of sum out of the Consolidated Fund for the year ending 31 March 2016 and appropriation of that sum

Sub-section (1) authorises the issue out of the Consolidated Fund of Northern Ireland of the sum of £7,986,369,200 for 2016-17.

Sub-section (2) appropriates that sum for the purposes specified in column 1 of Schedule 1.

Section 2: Power of the Department of Finance to borrow

This section authorises the temporary borrowing by the Department of Finance of approximately half the sum covered by Section 1 (1).  This is a normal safeguard against the possibility of a temporary deficiency arising in the Northern Ireland Consolidated Fund.

Section 3: Use of resources (other than accruing resources) in year ending 31 March 2017

This section authorises the use of resources amounting to £8,693,136,600 for 2016-17, for the purposes specified in column 1 of Schedule 2.

Section 4: Limit on use of accruing resources in year ending 31 March 2017

This section sets the limits on the accruing resources that may be directed to be used for certain specified purposes in the year ending 31 March 2017 in addition to the resources authorised by Section 3.  Sub-section (2) provides authority for the direction of accruing resources as specified in column 3 of Schedule 2 to be used for the purposes specified in the corresponding entries in column 1 of that Schedule.

Section 5: Resource excesses for the year ending 31 March 2015

Subsection (1) authorises the use of resources by the two departments mentioned in Schedule 3 that exceeded the authorised provision in 2014-15.

Subsection (2) authorises the amounts that may be used, as detailed in column 2 of Schedule 3, and the purposes for which they may be used, as specified in column 1 of that Schedule.

Subsection (3) clarifies the additionality of the resources authorised by Section 5 over any existing statutory provision for 2014-15.

This section gives effect to the 2014-15 Statement of Excesses for the Department of Finance and the Northern Ireland Assembly Commission following the report of the Public Accounts Committee confirming that it sees no objection to the resource amounts necessary being provided by Excess Votes.

Section 6: Repeal of spent provisions

This section removes from the statute book two Budget Acts which are no longer operative.

Section 7: Interpretation

As in Budget Act.

Section 8: Short title

This section provides for the Act to be known as the Budget (No. 2) Act (Northern Ireland) 2016 upon Royal Assent.