The new Welsh Government’s supplementary budget has been endorsed by the National Assembly’s Finance Committee.
The first supplementary budget of the new Assembly term looks at changes made since the final budget before the May election.
The main purpose of this supplementary budget is a restructure to reflect the Ministerial portfolio changes of the new Welsh Government.
The Government has allocated an extra £11 million to environment and rural affairs, £10 million to education, and £8 million to central services and administration.
The Committee was pleased to see that the commitment made in the last budget, concerning funding for the Welsh higher education sector, is reflected in the supplementary version. This was something the previous Finance Committee raised concerns over.
Originally the Government proposed cutting £41 million before revising it down to £20 million. The supplementary budget allocates an extra £5 million for part-time study and another £5 million for research.
The Committee also noted an extra £1.5 million allocated to support the business rates relief scheme at the Port Talbot Waterfront Enterprise Zone, which was set up in the wake of the steel industry crisis.
However, in future, it wants to see greater evidence setting out the rationale behind budget allocations including anticipated economic impact.
“The next five years will see huge changes to the way Wales is financed with taxation and borrowing powers being devolved from Westminster,” said Simon Thomas AM, Chair of the Finance Committee.
“It is vital, therefore, that Welsh Government budgets are open and transparent, reflect the concerns of the people of Wales, and demonstrate tangible outcomes to show how the money being spent is improving our lives.
“This Committee will be taking a microscope to Government budgets and spending over the next five years to ensure there is a clear direction, purpose and thorough evidence-based rationale behind its plans.
“Overall, the Committee was content with the proposals in this supplementary budget and noted the main purpose was a restructure to reflect the Ministerial portfolio changes of the new Welsh Government.”
The Welsh Government’s supplementary budget will be considered by the National Assembly on Tuesday 12 July.