(This post has been updated on 30-March))
New NSW Premier, Barry O'Farrell, has released the typical new government "we found a black hole in the budget" media release.
It was not unexpected - almost every new government does it, whether Coalition or Labor.
Mr O'Farrell released a media statement headlining a "$4.5 Billion black hole".
But where did the $4.5 Billion ‘black hole’ come from? The answer lies in events since the last estimates were released.
|Budget Results|| |
|1/2 Yearly Review |
|Latest estimate|| |
|Change from 1/2 Yearly Review|| |
- The new budget report will account for the ‘worst-case’ – it’s what Treasury does for incoming governments.
- It also accounts for the result of Labor’s sale of publicly-owned electricity assets, the extra expenditure involved, including developing a coal mine for a private company, and the subsequent loss of income from them. Former Labor Treasurer, Eric Roozendaal, is responsible for that.
Perhaps, in the spirit of new ‘accountability’ promised by Mr O’Farrell, he might release the basis of his budget deficit in 2014-15, approximately 42.4 Billion, by his reckoning. Everyone’s allowed one dream per day – I guess I just had mine.