Government revenues $6bn less than forecast: Finance Department

FEDERAL government revenues are running just over $6 billion less than was forecast at the time of the mid-year budget review, new Finance Department data shows. 
 
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.

See article:

Iraq, the war and how we got it wrong