Is Joe Hockey a liar or an incompetent fool?

We have said this before but let us say it again.

The only changes to PEFO and MYEFO are:

• Changes in Government policy
• Changes in economic parameters

See the  Kouk  as well.

Either Joe Hockey knows this and he is lying his head off at present or he doesn't and he is simply an incompetent fool.

A couple of things to realise before 12.30 today.

• Actual nominal outlays contracted in 2012/13. They fell by 1%.

• Underlying public demand subtracted 0.3 percentage points from growth in that year. ( This is the budget the Catallaxy clowns said was expansionary!!) It usually adds about 0.7 percentage points to GDP

( Research courtesy of CBA economics)