Economy

Oct 17, 2012

Ten-year budget forecasts? What a crock

A 10-year budget forecast is nonsensical. But maybe the newspaper that has called for it -- the venerable Australian Financial Review should try it for itself.

Well done to The Australian Financial Review for its “courage” in this morning’s editorial in calling for a 10-year outlook for the federal budget.

“Mr Swan should grasp the opportunity presented by the upcoming Mid Year Economic and Fiscal Outlook to begin a commitment to 10-year budget forecasts like those produced by the bipartisan US Congressional Budget Office. That would make it possible to ascertain what lies beyond the budget’s four-year forward estimates, explain how future governments are going to pay for Labor’s new, big, unfunded social programs, and force policymakers to explain the sensitivity analysis used in their budgetary projections at a time of increased uncertainties about the global economy.

Free Trial

Proudly annoying those in power since 2000.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’s terms and conditions

5 comments

Leave a comment

5 thoughts on “Ten-year budget forecasts? What a crock

  1. Spica

    If you were serious about straight reporting and rational comment would you put Michael Stutchbury in charge ?

  2. klewso

    Good point – “do unto others etc” – is the FIN going to give us a forecast of their next 10 years?
    More “stunted development”?

  3. Mike Smith

    “Because five-year plans worked so well for the USSR.”

    Snicker.

  4. zut alors

    Q: How do you make g0d laugh?

    A: Plan.

  5. jackp

    should be no problem. the AFR will not be around in 10years ..problem solved

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details

Sending...