The power to propose: An analysis of the government's financial veto

Abstract

This paper explores the financial veto procedure established in the Standing Orders of the House of Representatives of New Zealand. The paper historically situates the financial veto by considering the traditional division of authorising power in public finance. It then sketches an outline of the financial veto, while noting that the scope of the financial veto is not entirely clear. The paper finds that the financial veto runs contrary to democratic principles; a proportionality analysis is used to determine that the procedure is an unjustified limitation on those principles. The abolition of the financial veto procedure is recommended, but alternative options for reform are also briefly considered.