Government can sigh with relief at unchanged deficit forecast, but the jobs and growth seem more elusive than ever
The government would have greeted the release of the pre-election fiscal and economic outlook on Friday with a sigh of relief as the budget deficits were essentially unchanged. But the numbers in the Pefo and the commentary by the heads of the Treasury and the Department of Finance provide a tough question for the government – for all the talk of a plan for jobs and growth, where are the signs of either?
The Pefo ended up being released a bit earlier than needed. The Treasury and Department of Finance had 10 days from the issuing of writs last Monday; instead it was released it within four days. Releasing so early meant the departments didn’t need to consider the record low wages growth figures released last week. And because the Treasury makes its assumptions on commodity prices – such as iron ore – on “an average of the preceding weeks” there would be little changed from the budget even with the recent sharp fall in iron ore prices.
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