Capital and Investing Budgets

91 The Hon. S.C. MULLIGHAN (Lee) (4 June 2020). Have any departments or agencies estimated to have underspent their approved 2018-19 capital/investing budgets?

(a) Which agencies are estimated to have underspent?

(b) By how much has each agency estimated to have underspent?

(c) What are the reasons for each agency's underspending?

The Hon. S.S. MARSHALL (Dunstan—Premier): I have been advised:

The final outcome for the 2018-19 investing expenditure for the general government sector was $1,794 million, which was $49 million (2.7 per cent) lower than the revised budget for 2018-19 included in the 2019-20 Budget. Investing budgets published in the 2018-19 State Budget were revised to reflect subsequent decisions made by the government during 2018-19. Revised budgets were presented in the 2019-20 Budget papers. The following agencies reported underspending, and the reasons for that underspend, against their approved revised 2018-19 investing budget:

Planning, Transport and Infrastructure ($63.8 million) associated with major projects including the Gawler Line Electrification and Northern Connector

Health and Wellbeing ($46.7 million) associated with major projects, including the new Royal Adelaide Hospital site works, Country Health SA Sustainment and Compliance and Electronic Medical Records System

Education ($30.3 million) associated with various school capital programs

Office for Recreation, Sport and Racing ($15.2 million) mainly associated with the Home of Football at State Sports Park, Adelaide Super-Dome upgrades and Women's Memorial Playing Fields

Premier and Cabinet ($10.1 million) mainly associated with the Adelaide Festival Centre upgrade

Emergency Services ($9.3 million) mainly associated with the structural firefighting training prop (MFS) and heavy urban appliances (MFS) projects

Treasury and Finance ($8.4 million) mainly associated with Super SA ICT and the office fit-out for State Administration Centre and Wakefield House projects

Environment and Water ($5.2 million) mainly associated with the Riverine Recovery and Flows for the Future projects

Innovation and Skills ($3.3 million) mainly associated with system projects to support organisational transformation

Courts Administration Authority ($3.2 million) mainly associated with the Electronic Court Management System and Higher Courts Redevelopment projects

Child Protection ($2.6 million) mainly related to office accommodation fit-outs

Attorney-General's Department ($1.8 million) mainly associated with the liquor licensing full fee structure and Ombudsman SA Office Accommodation projects

SA Police ($1.2 million) mainly associated with the Police Records Management System (stages 2 to 4) and the Umuwa Police Station project

TAFE SA ($1.2 million) mainly associated with capital works at the Mount Barker and Murray Bridge campuses

Energy and Mining ($1.0 million) mainly associated with the State Drill Core Reference Library project

Tourism ($0.07 million) associated with annual works programs

Primary Industries and Regions SA ($0.04 million) mainly as a result of livestock sales exceeding livestock purchases

Environment Protection Authority ($0.04 million) associated with minor capital works

Defence SA ($0.04 million) due to the treatment of a land purchase as an expense

Trade, Tourism and Investment ($0.03 million) associated with the ICT capital program.

A significant element of the investing underspend reflects changes to the timing of projects that were subsequently carried over into 2019-20 and future years across the forward estimates. The budget included a slippage provision to reflect the tendency, on a whole of government basis, for underspending due to some projects slipping from their budgeted expenditure profile. This provision largely offset the identified agency underspending.