Federal budget figures thrown into doubt

AAP General News (Australia)
12-02-1999
Federal budget figures thrown into doubt

SYDNEY, Dec 2 AAP - This year's federal budget interest rate policy and much government
spending are based on financial information that a high-level internal government report
says is unreliable.

The damning report, which the Australian Financial Review obtained under Freedom of
Information provisions, raised questions about the veracity of many costings in the budget,
AFR said.

The report said many departments did not have the expertise to provide accurate information.

AFR said its preparation had corresponded with a heated debate about the effects of
the goods and services tax and changes to business tax on the budget's bottom line, as
well as the introduction of an East Timor levy to ensure the budget remained in surplus.

The ALP agreed to back the business tax on the basis that it did not harm the government's
plan for fiscal balance.

AFR said the report by former Victorian Treasury boss Dr Michael Vertigan suggested
there were many difficulties associated with costings.

These included a host of problems in the budget process flowing from the change from
cash to accrual accounting early this year.

AAP cf/was

KEYWORD: BUDGET

1999 AAP Information Services Pty Limited (AAP) or its Licensors.