Monday 3 December 2018

Why is the fiscal policy being shown the wrong way.

We are in debt again to Ross Gittins. He is again on the case of examining fiscal policy on the basis of accrual accounting not cash accounting. This is probably because he is a former charted Accountant.

The PBO has done the legwork for us. They have to as you will only find cash accounting in commonwealth budget documents.
It is entirely misleading.
As the PBO shows us the future is looking good.
so why are officials not giving us the Budget in accrual accounting terms.

My guess is because they think their political masters will think there is no more work to do. Keeping cash accounting enables Treasury to say to Ministers they have to do more.

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