Tuesday, 12 November 2013

Where is Australian Federal Treasurer Joe Hockey sourcing his financial advice?

By the end of October 2013 the Abbott Government was borrowing an est. $265 million per day and it continues to borrow at a frenetic pace. 
At the same time it is moving away from the budget measures outlined in its September 2013 costing table and has blown out the 2013 budget deficit by an estimated $10 billion.
ABC News 9 November 2013:
The Budget Monitor from Deloitte Access Economics..... has raised concerns about whether the Government will take unpopular decisions to improve the budget outcome and return to surplus within the promised 2016/17 timeframe.
The assessment has forecast a budget deficit of $39.7 billion for this financial year, almost $10 billion higher than the Pre-Election Fiscal Outlook (PEFO) predicted.
The PEFO estimated a deficit of $30 billion, but since then the new Coalition Government has scrapped some tax windfalls and handed $9 billion to the Reserve Bank.
Deloitte's Chris Richardson says those decisions have significantly contributed to the size of the deficit.
"That is a cost to the budget, it's all fallen this year. It's a lot of dollars," he said.
"You might eventually see those dollars head back to the Government but it is a really rotten budget deficit this year."

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