Commentary on Clauses Section 47: Payment out of Consolidated Fund
268.This section permits HMRC to receive cash from the Consolidated Fund on days when revenue incomings are insufficient to fund the outgoing payments that HMRC is obliged to make.
269.Subsection (1) specifies the outgoing payments that may be funded by a draw down of cash from the Consolidated Fund. These payments are any payment into the National Insurance Fund or National Insurance Fund for Northern Ireland, and any of the other exceptions or disbursements specified within sections 44(2) and 44(3).
270.Subsection (2) provides that the Treasury may make a payment to the Commissioners out of the Consolidated Fund to allow a payment specified in subsection (1) to be made. In order to make use of this facility, HMRC would be required to apply to the Treasury for funding from the Consolidated Fund. Payment out of the Consolidated Fund under this section would constitute a payment for standing services (that is a payment for a service that, under an Act, is due to be made out of the Consolidated Fund) under section 13 of the Exchequer and Audit Departments Act 1866 and would therefore be subject to the Treasury obtaining permission from the Comptroller and Auditor General for a draw down of funds from the Consolidated Fund. The form of such a permission would be governed by section 3 of the Government Resources and Accounts Act (GRAA) 2000, and would be subject to the Comptroller & Auditor General being satisfied that the draw down of funds was appropriate and necessary. If the Comptroller & Auditor General granted permissions, the Treasury would pay the required cash to HMRC. This process ensures that Parliamentary scrutiny of this facility is maintained.
271.Subsection (3) ensures that the facility to draw down cash from the Consolidated Fund can be utilised to fund all payments specified in subsection (1), even where the payment is being made in order to correct a previous allocation of funds that was based upon an incorrect estimate of the amounts to be paid into the Consolidated Fund or other funds.
272.It should be noted that the facility to draw down cash from the Consolidated Fund under this section applies only to revenue and other outgoings permitted under section 44 – it does not apply to the department’s own expenditure which is provided for at section 43.