{{otheruses, Estimate (disambiguation)
In the Westminster system of government, the ''Estimates'' are an outline of government spending for the following
fiscal year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
parliament
In modern politics, and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: representing the electorate, making laws, and overseeing the government via hearings and inquiries. Th ...
. The Estimates are drawn up by bureaucrats in the
finance ministry
A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation.
A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...
in collaboration with cabinet ministers. They consist of detailed reports on how each department or ministry will spend its money. The estimates are normally introduced in the responsible chamber (the lower house in bicameral parliaments) just prior to the main
Budget Day
Budget Day is the day that a government presents its budget to a legislature for approval, in a ceremonial fashion. It only exists in some countries of the world.
India
The Union Budget of India, referred to as the Annual Financial Statement i ...
, which gives them time to be analyzed by House committees. Unlike the budget, the estimates contain no references to
fiscal policy
In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variab ...
, long-term goals, or
funding
Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm use ...
. After each section is reviewed by the relevant committee the entire Estimates are voted on as one
bill
Bill(s) may refer to:
Common meanings
* Banknote, paper cash (especially in the United States)
* Bill (law), a proposed law put before a legislature
* Invoice, commercial document issued by a seller to a buyer
* Bill, a bird or animal's beak
Plac ...
. Defeat on the vote is treated as
loss of supply
Loss of supply occurs where a government in a parliamentary democracy using the Westminster System or a system derived from it is denied a supply of treasury or exchequer funds, by whichever house or houses of parliament or head of state is con ...
and tantamount to loss of confidence. Unlike tax proposals in the budget, the Estimates are rarely controversial, with most issues being dealt with in committee.
Most of the countries also mandate an update or series of updates to the Estimates to account for changes in the economy or in government policy. In Canada, for instance, this update must be passed in December each year.
References
McMenemy, John. "Estimates' ''The Language of Canadian Politics.'' 1995
Westminster system
