ABSTRACT
This chapter traces the administrative and political processes through which the Coalition translated its election promises into the 1996— 97 Budget. It reviews important changes to the budget processes and the decentralisation of the estimates process. The 1996 election campaign simulated a 'sham auction' with both sides bidding new expenditure programs across a range of policy areas. As a consequence, expenditures would increase as statutory outlays on individual benefits rose, and revenue decrease due to declining taxation receipts from individuals and companies. The Coalition assumed government on 11 March 1996 facing the challenge of transforming their promises into budget reality. Expenditure estimates were revised to include any additional spending arising from new policy decisions taken by Labor after its May 1995 Budget. Most commentators provided a relatively positive assessment of the government's intended budget strategy. 'The sense of fiscal crisis was further enhanced by the findings of the National Commission of Audit (NCA).
