1.1
The Joint Committee of Public Accounts and Audit (JCPAA) has oversight responsibilities for the Parliamentary Budget Office (PBO), under sections 64S and 64T of the Parliamentary Service Act 1999 (PS Act 1999).
1.2
Under these statutory oversight provisions, on 4 December 2019 the Committee resolved to inquire into and report on the operations of the PBO, in reference to:
PBO implementation of the recommendations of the Report of the Independent Review Panel, Parliamentary Budget Office Review 2016-17;
PBO implementation of the recommendations of JCPAA Report 446, Review of the Operations of the Parliamentary Budget Office, 2014;
Stakeholder relationships and engagement; and
Possible areas of reform to support the effective operations of the PBO.
Role of the PBO
1.3
The PBO commenced operations on 23 July 2012 with the appointment of the Parliamentary Budget Officer, and is established under the PS Act. Under section 64B of the Act, the purpose of the PBO is to ‘inform the Parliament by providing independent and non-partisan analysis of the budget cycle, fiscal policy and the financial implications of proposals’.
1.4
The PBO undertakes this role by:
responding to requests made by Senators and Members for costings of policy proposals or for analysis of matters relating to the budget
publishing a report after every election that provides transparency around the fiscal impact of the election commitments of major parties
conducting and publishing research that enhances the public understanding of the budget and fiscal policy settings
1.5
A Memorandum of Understanding between the Parliamentary Budget Officer and the Heads of Commonwealth Bodies in relation to the Provision of Information and Documents (September 2012) governs PBO access to information.
1.6
Subsection 64S(1) of the PS Act sets out the duties of the JCPAA with regard to the PBO—subsection 64S(2) states that ‘nothing in subsection (1) authorises the Committee to direct the activities of the Parliamentary Budget Officer’.
About the Inquiry
1.7
On 4 December 2019, the Committee resolved to inquire into and report on the operations of the PBO pursuant to provisions contained in sections 64S and 64T of the PS Act.
1.8
On 10 December 2019, the Committee issued a media release announcing the inquiry and inviting submissions. The inquiry received seven submissions, as listed at Appendix A.
1.9
A public hearing was held on 7 February 2020. A list of witnesses and organisations is at Appendix B.
1.10
A copy of this report, the transcript of the public hearing and submissions received are available on the Committee’s website on https://www.aph.gov.au/jcpaa.
Report Outline
1.11
Key matters covered in Chapter 2 include:
PBO review: possible area of reform to support effective PBO operations
PBO implementation of previous review recommendations
Stakeholder relationships and engagement
Summary of other possible areas of reform to support effective PBO operations
Concluding comment, including recommendations.