Formats and related files
Following yesterday’s Parliamentary Question Time, the Treasury has published an explanatory note to clarify how its cost-benefit analysis (CBAx) tool is used as an input into the wellbeing analysis that informs Government’s Budget decision-making process.
Cost-benefit analysis and other tools are used to inform similar decision-making processes in other countries, and are one way in which the public service can add value to its support for ministers. The Treasury is always working to improve its understanding of Budget proposals, and continues to develop the range of tools it uses in the Budget process.
For Budget 2019, a broader wellbeing analysis approach has been developed, of which cost-benefit analysis is just one aspect. The Budget 2019 Guidance for Agencies sets out the main elements taken into account in the assessment of bids.
Secretary to the Treasury Gabriel Makhlouf has written to the Finance and Expenditure Select Committee, providing the explanatory note in order to address potential misunderstandings about the Budget process.
Mr Makhlouf’s letter and the explanatory note are attached.