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Public Finance Act

Commencement: 29 July 1980
Repealed

LAWS OF THE REPUBLIC OF VANUATU
REVISED EDITION 1988

CHAPTER 117

PUBLIC FINANCE

JR 24 of 1980
Act 6 of 1983
Act 5 of 1985

ARRANGEMENT OF SECTIONS

SECTION

PART I
Interpretation

1. Interpretation

PART II
Powers and Duties of the Minister and Accounting Officers

2. Powers of Minister
3. Duties of accounting officers

PART III
Public Finance

4. Revenue Fund

5. Payments into Revenue Fund

6. Issues from Revenue Fund
7. Investment of Revenue Fund and other public monies

8. Restrictions on borrowing

9. Special funds
10. Development Fund
11. Deposits
12. Advances
13. Guarantees to be approved by Parliament

PART IV
Control of Expenditure

14. Annual estimates

15. Authorisation of expenditure
16. Provisional appropriation

17. Supplementary estimates
18. Provision for urgent and unforeseen expenditure
19. Virements
20. Expenditure in excess of appropriation

PART V
Abandonments of Claims and Writes-off
of Public Monies and Public Stores

21. Abandonments and writes-off
22. Disposal of serviceable Stores etc. to certain organisations

PART VI
Accounts and Audit

23. Annual accounts and audit

PART VII

General

24. Regulations

SCHEDULE 1 Compagnie de Navigation Inter-lies South Pacific Fishing

Company

SCHEDULE 2 Deferred Pay Fund

Re-afforestion Fund

Housing Loan Fund

Radar Wind-Sonde Excess Contribution Fund

STABEX Fund

Agricultural Loans Fund

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PUBLIC FINANCE

To provide for the establishment of a Revenue Fund, a Development Fund and other special funds; and for the control and management of the finances of the Government of the Republic of Vanuatu, for the collection, issue and payment of public moneys and for other matters connected therewith.

PART I
INTERPRETATION

INTERPRETATION

1. In this Act unless the context otherwise requires -

"accounting officer" includes every public officer who is charged by the Minister with the duty of collecting, receiving or accounting for, or who in fact collects, receives or accounts for, any public moneys, or who is charged with the duty of disbursing or who does disburse any public moneys and every public officer who is charged with the receipt, custody or disposal of, or the accounting for, public stores or who in fact receives, holds, disposes of, or accounts for public stores;

"Appropriation Act" means any Act to apply a sum out of the Revenue Fund for the service of a financial year and includes a Supplementary Appropriation Act;

"Revenue Fund" means the Revenue Fund established by section 4;

"financial year" means a period of 12 months ending on 31 December or any other period of 12 months so declared by the Minister;

"Minister" means the Minister for the time being responsible for finance;

"public stores" means all things of whatsoever nature, the property of or in possession of or under the control of the Government;

"special fund" means a fund established or considered to have been established by or under section 9;

"statutory expenditure" means expenditure charged on the Revenue Fund by the Constitution or any Act (including this Act) other than an Appropriation Act.

PART II
POWERS AND DUTIES OF THE MINISTER
AND ACCOUNTING OFFICERS

POWERS OF MINISTER

2. (1) The Minister shall so supervise the expenditure and finances of the Government as to ensure that a full account thereof is made to Parliament and that control by Parliament is upheld and for such purpose, shall, subject to the provisions of this Act, have the management of the Revenue Fund and the supervision, control and direction of all matters relating to the financial affairs of the Government which are not assigned to any other person by or under any Act.
   

(2) The powers, duties and functions of the Minister under this Act may be exercised by any officer, agent or trustee, authorized by him in writing to the extent of the authority contained in such writing.

DUTIES OF ACCOUNTING OFFICERS

3. Every accounting officer and every other person concerned with or responsible for the collection, receipt, custody, issue or payment of public or other monies, stores, stamps investments, securities or negotiable instruments whether the property of the Government or entrusted to the Government or to any public officer in his official capacity either alone or jointly with any public officer or any other person, shall be subject to this Act and any order made hereunder and shall perform such duties, keep such books and render such accounts as may be prescribed by or under this Act or by instructions issued by order of the Minister in matters of accounting or financial procedure not inconsistent therewith.
   

PART III
PUBLIC FINANCE

4. There shall be one revenue fund for the Republic of Vanuatu which shall be called the Revenue Fund and which shall be kept by the Treasury.
   

PAYMENTS INTO REVENUE FUND

5. Except as provided by sections 9, 10 and 11 all revenue or other monies raised or received for the purposes of the Government (not being revenue or other monies that are payable by or under any Act including this Act, into some other fund established for a specific purpose) shall be paid into and form the Revenue Fund.
   

ISSUES FROM REVENUE FUND

6. (1) No money shall be issued from the Revenue Fund, except in accordance with the provisions of this Act or any other Act.
   

(2) Any monies forming part of the Revenue Fund which are -

(a) invested in accordance with the provisions of section 7; or

(b) advanced in accordance with the provisions of section 12;

shall be considered not to have been issued from the Revenue Fund for the purposes of this section.

INVESTMENT OF REVENUE FUND AND OTHER PUBLIC MONIES

7. (1) Monies received by the Government may be kept with such bank or banks as the Minister may direct.
   

(2) All public monies paid into a bank shall be the property of the Government lent by the Government to the bank.

(3) No accounting officer shall open any public or official account in any bank without the authority in writing of the Minister and no bank shall permit any Government account to be overdrawn without the prior approval of the Minister or in accordance with the provisions of section 8.

(4) Money standing to the credit of the Government with any bank, or otherwise held by the Government, may be invested by the Minister -

(a) by deposit in any bank or in any joint fund maintained overseas for investment of Government monies; or

(b) as otherwise authorised by this Act or any other Act or by resolution of Parliament.

(5) The monies invested in shares held by the Government in the bodies set out in Schedule 1 at the time of the coming into force of this Act shall be considered properly invested for the purposes of this Section.

(6) Interest from the monies invested in accordance with the provisions of subsection (4) shall be credited to the Revenue Fund except where it is provided in any Act or under the rules of any special account that the interest received from the investment of any monies standing to the credit of any special account kept by the Treasury shall be paid to the credit of that special account.

RESTRICTIONS ON BORROWING

8. (1) The Government shall not borrow money except in accordance with the provisions of an Act except that the Minister in order to meet any current requirement of the Government, shall be authorised to borrow by means of advances from any bank or other similar institution by means of a fluctuating overdraft, or otherwise, amounts not exceeding the limits, and in accordance with the provisions prescribed in the annual Appropriation Act or a resolution of Parliament.
   

(2) The principal and interest of all borrowed monies shall be charged upon and paid out of the Revenue Fund without further authority than this Act.

SPECIAL FUNDS

9. (1) The Minister may make financial provision for the establishment of special funds.
   

(2) Special funds shall not form part of the Revenue Fund.

(3) The special funds set out in Schedule 2 shall be considered to have been established in accordance with the provisions of subsection (1) and the balance standing to the credit of each of them at the close of account on the coming into operation of this Act shall be considered to have been appropriated by the Minister for the purposes specified in respect of each fund.

(4) The Minister may direct that any special fund established or considered to have been established in accordance with the provisions of this section shall be wound up and thereupon after all the liabilities of such fund have been paid, the fund shall be closed accordingly.

(5) The balance of monies standing to the credit of any special fund wound up and closed under the provisions of subsection (4) shall be paid into the Revenue Fund.

DEVELOPMENT FUND

10. (1) Subject to subsection (2), there shall be established a Development Fund to be maintained by the Treasury for the purpose of financing capital projects and other non-recurring expenditure of the Government into which shall be paid all monies that shall be approved and appropriated thereto by Parliament and from which expenditure shall be authorised with the approval of Parliament.
    

(2) It shall be lawful for the Development Fund to be in debit at any one time to an amount not exceeding VT500,000,000 or such other sum as Parliament may from time to time by resolution approve.

DEPOSITS

11. (1) Any monies not being monies raised or received for the purposes of the Government which may be deposited with the Treasury or with any public officer authorised by the Minister to receive such deposits shall not form part of the Revenue Fund and, except as provided in subsection (2), shall not be applied in any way for the purposes of the Government.
    

(2) The Minister in his discretion may authorise the use of deposits for the purpose of making advances for all or any of the purposes stated in section 12.

ADVANCES

12. (1) The Minister may by warrant under his hand authorise disbursements of monies forming part of the Revenue Fund or other funds for the purpose of making advances -
    

(a) on behalf of and recoverable from other Governments;

(b) on behalf of public bodies or institutions when in the opinion of the Minister such advances are in the public interest and are repayable within a period of 5 years from the close of the financial year in which such advances are made;

(c) to or on account of any special fund when such advances are recoverable before the close of the financial year in which such advances are made;

(d) to public officers for such purposes and under such terms and conditions as may be prescribed from time to time;

(e) to meet expenditure authorised by a loan Act in anticipation of the receipt of any instalment of the loan authorised by such Act.

(2) The total of the sums disbursed for the purpose of making advances in accordance with subsection (1) shall not exceed in aggregate at any one time, after deducting repayments, an amount of VT200,000,000.

GUARANTEES TO BE APPROVED BY PARLIAMENT

13. No guarantee involving any financial liability shall be binding upon the Government unless approved by resolution of Parliament.
    

PART IV
CONTROL OF EXPENDITURE

ANNUAL ESTIMATES

14. (1) The Minister shall cause to be prepared and laid before Parliament not later than 1 month prior to the commencement of each financial year estimates of revenue and expenditure of the Government for that year.
    

(2) Subject to subsection (3) the estimates of revenue and expenditure laid before Parliament shall be in such form as the Minister may from time to time direct.

(3) (a) The estimates of statutory expenditure shall show the sums to be

issued from the Revenue Fund to meet the expenditure of each service of the Government and shall contain a reference to the law authorising the expenditure of such service to be charged on the Revenue Fund.

(b) the estimates of other expenditure shall describe the ambit of each head and shall show the sum required to be applied to such head by appropriation from the Revenue Fund.

AUTHORISATION OF EXPENDITURE

15. (1) The proposals for expenditure (other than for statutory expenditure) contained in the estimates for the financial year shall be included by head in a Bill to be known as an Appropriation Bill which shall be introduced into Parliament together with the estimates to provide for the issue from the Revenue Fund of the sums necessary to supply those heads and for the appropriation of those sums for the purposes specified in the Bill.
    

(2) Subject to subsection (3), on the coming into operation of the Appropriation Act the Minister shall authorise by warrant under his hand the issue from the Revenue Fund of such sums as may have been applied to the service of the financial year by such Appropriation Act.

(3) Notwithstanding the issue of a warrant under subsection (2) the Minister may limit or suspend any expenditure (not being statutory expenditure) with or without cancellation of the warrant if in his opinion financial exigencies or the public interest so require.

(4) The Minister shall authorise by warrant under his hand the issue from the Revenue Fund of the sums required during the financial year to meet statutory expenditure.

PROVISIONAL APPROPRIATION

16. Notwithstanding the other provisions of this Act, if the Appropriation Act has not come into operation at the commencement of any financial year, the President of the Republic may authorise the Minister to approve provisionally by warrant under his hand the issue from the Revenue Fund of such sums as are necessary for carrying out the services of the Government at a level not exceeding the level of those services in the previous financial year for a period of 3 months or until the Appropriation Act comes into operation, whichever is the earlier.
    

SUPPLEMENTARY ESTIMATES

17. Where it is necessary in respect of any one financial year to provide for expenditure upon any service not already provided for by the Appropriation Act or any Supplementary Appropriation Act relating to that year or which is in excess of the provision made in respect of that service by that Appropriation Act or any Supplementary Appropriation Act, proposals for such expenditure shall be shown in supplementary estimates and presented to Parliament and shall be included in a Supplementary Appropriation Bill.
    

PROVISION FOR URGENT AND UNFORESEEN EXPENDITURE

18. (1) Subject to the provisions of this section, the Minister if he is satisfied that an urgent need for expenditure has arisen -
    
    • (a) for which no provision exists or for which the existing provision is insufficient;
      
    • (b) for which funds cannot be provided under the provisions of section 19;
      
    • (c) which cannot be deferred without detriment to the public interest; and
      

(d) which is due to exceptional circumstances which could not have been fore- seen;

may by a contingencies warrant under his hand, but only with the prior approval of the Council of Ministers in anticipation of the grant of an appropriation, authorise the issue of monies from the Revenue Fund to meet that need.

(2) The total of the sums which may be authorised under subsection (1) shall not exceed at any one time an amount of VT100,000,000 or such other sum as Parliament may by resolution from time to time approve.

(3) Where any issue is made from the Revenue Fund under the provisions of this section a supplementary estimate of the sum required for the service for which such issue was made shall be presented to Parliament at its meeting next following the date on which the warrant was issued and shall be included in a Supplementary Appropriation Bill.

VIREMENTS

19. (1) Subject to subsection (2) if the exigencies of the public service render it necessary to alter the proportions assigned to items within a subhead of expenditure shown in the estimates, or to create a new item the Minister may direct by a warrant that there shall be supplied in aid of any item which may be deficient or in aid of any new item a further sum out of savings arising on any other item within the sub- head.
    

(2) When the Minister issues a warrant under subsection (1)

(a) the sum appropriated to any head by the Appropriation Act shall not be thereby exceeded; and

(b) the ambit of any item shall be within the ambit of the head within which it is created.

EXPENDITURE IN EXCESS OF APPROPRIATION

20. If at the close of account for any financial year it is found that any monies have been expended on any head in excess of the sum appropriated for that head by an Appropriation Act or for a purpose for which no money has been appropriated, the excess, or the sum expended but not appropriated as the case may be, shall be included in a statement of heads in excess which, together with the report of the Public Accounts Committee thereon, shall be presented to Parliament and shall also be included in a Supplementary Appropriation Bill.
    

PART V

ABANDONMENTS OF CLAIMS AND WRITE-OFF
OF PUBLIC MONIES AND PUBLIC STORES

ABANDONMENTS AND WRITES-OFF

21. (1) Parliament may by resolution authorise the Minister, in his discretion to the extent specified in such resolution, to abandon and remit any claims by or on behalf of the Government or any service thereof and to write-off losses of public monies, stores or other movable property belonging to or provided for the Government.
    

(2) The Minister in his discretion may by writing under his hand delegate to any public officer any of the powers which he is authorised to exercise by resolution of Parliament under this section.

DISPOSAL OF SERVICEABLE STORES ETC. TO CERTAIN ORGANISATIONS

22. The Minister, in his discretion, may authorise the gift of serviceable Government stores or property not required for Government purposes to institutions or organisations in Vanuatu established solely or principally for educational, scientific, cultural or charitable purposes.
    

PART VI
ACCOUNTS AND AUDIT ANNUAL ACCOUNTS AND AUDIT

23. (1) Within a period of 6 months after the close of each financial year, or such longer period thereafter as Parliament may by resolution appoint, the Minister shall transmit to the Auditor General statements and accounts showing fully the financial position of the Government on the last day of such financial year.
    
    • (2) The statements and accounts referred to in subsection (1) shall include -
      

(a) a statement of assets and liabilities;

(b) a summarised account of receipts and payments;

(c) a detailed statement of revenue and expenditure;

(d) a summarised account of receipts and payments for the Development Fund; and

(e) such other statement as Parliament may from time to time require.

PART VII
GENERAL REGULATIONS

24. (1) The Minister may by Order make regulations not inconsistent with the provisions of this Act for carrying out the provisions hereof and without prejudice to the generality of this provision such regulations may provide for -
    

(a) the collection, receipt, custody, issue, expenditure, due accounting for, care and management of all public monies and the guidance of all persons concerned therewith;

(b) the effective recording, examination, inspection and checking of receipts and expenditure and the keeping of all necessary books and accounts;

(c) the forms for all accounts, books and documents whatsoever required under the provisions of this Act or regulations made hereunder;

(d) the purchase, safe custody, issue, sale or other disposal or writing-off of public stores and other property of the Government and the proper accounting for and stocktaking of such stores and property;

(e) the preparation of estimates of revenue and expenditure of the Government;

(f) the authorisation of rates of payment of public funds not provided for by this Act or any other Act; and

(g) the making of advances to public officers and the rates and limits of such advances and the rates of interest thereon.

(2) Notwithstanding any provision to the contrary, any regulations made in accordance with this section shall be published in such manner as the Minister may specify therein but shall not have retrospective effect.

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SCHEDULE 1

(Section 7(5))

Compagnie de Navigation Inter-Iles
South Pacific Fishing Company

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SCHEDULE 2

(Section 9(3))

Deferred Pay Fund
Re-afforestion Fund
Housing Loan Fund
Radar Wind-Sonde Excess Contribution Fund
STABEX Fund

Agricultural Loans Fund

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