Pre Election Fiscal Outlook

25th July 2010

Today the Treasurer, the Hon. Wayne Swan and the Minister for Finance and Deregulation, the Hon. Lindsay Tanner, released the Pre-Election Fiscal Outlook (PEFO).

The PEFO report is available online at http://www.treasury.gov.au/contentitem.asp?NavId=002&ContentID=1858
About PEFO
The Charter of Budget Honesty Act 1998 (the Charter) provides for the Secretary to the Treasury and the Secretary to the Department of Finance and Deregulation to release publicly a Pre-Election Economic and Fiscal Outlook report (PEFO) within ten days of the issue of the writ for a general election. Such a writ was issued on 19 July 2010.
The purpose of the PEFO is to provide updated information on the economic and fiscal outlook. The information in the report takes into account, to the fullest extent possible, all Government decisions made before the issue of the writ and all other circumstances that may have a material effect on the fiscal and economic outlook.
In recognition of the limited time available to prepare the PEFO, the Charter provides that information which is unchanged from that provided in an earlier economic and fiscal outlook report may be summarised in the PEFO.
The 2010 PEFO updates the estimates contained in the 2010-11 Budget (May 2010) and the Economic Statement (July 2010). Like the Economic Statement, the 2010 PEFO takes into account information contained in the March quarter national accounts. In addition, it includes all decisions taken by the Government since the 2010-11 Budget.
The Economic Statement is available online at http://www.budget.gov.au/2010-11/content/economic_statement/html/index.htm.
The following information is directly from the PEFO.

Overview
Table 1: Summary of budget aggregates
 
 
 
a.                    Excludes expected Future Fund earnings.
 
Table 2: Major economic parameters(a) (b)
 
a.                    Real and nominal GDP are year-average growth. Employment and the Consumer Price Index are through-the-year growth to the June quarter. The unemployment rate is the rate in the June quarter.
b.        The parameters for 2010-11 and 2011-12 are forecasts and those for 2012-13 and 2013-14 are projections.
Source: ABS cat. nos. 5206.0, 6202.0, 6401.0 and 6345.0, Treasury.
Fiscal outlook
Table 3: Australian Government general government sector budget aggregates
a.                    Excludes expected Future Fund earnings.
Underlying cash balance estimates

Net debt and net financial worth

 For further information please contact your Hawker Britton consultant - www.hawkerbritton.com.

hawker britton