16 March 2013
Government revenues $6bn less than forecast: Finance Department
The financial statement for January, released today, showed the underlying cash balance at $26.8 billion in the financial year to January.
This compares with the $21.7 billion estimated for the year to January at the time of the mid-year fiscal and economic outlook (MYEFO) released in October, and when the government was still predicting a $1.1 billion budget surplus.
Treasurer Wayne Swan subsequently shelved his surplus promise in December.
Total revenue was $6.06 billion less than MYEFO had projected by January.
A spokeswoman for Finance Minister Penny Wong said tax receipts were well below forecast, mainly due to the substantial hit to company profits as a result of the high Australian dollar, falling commodity prices and continued global economic uncertainty.
“The government has continued to exercise spending restraint,” she said.
Total expenses were $1.38 billion less than predicted in the MYEFO by January.
The combined total of the government's minerals and petroleum resource rent taxes was $403 million in January for $1.55 billion in the financial year to date.
This compared with a MYEFO prediction to January of $5.58 billion.
theaustralian.com.au 15 Mar 2013
Watch now as the government will go on a financial assault to re-coup the finances with old methods and new ones.
Maybe the government's financial calculations were wrong, just like the invasion of Iraq.
Iraq, the war and how we got it wrong