Henry Ergas has a perceptive article in The Australian about
Wayne’s deficit chainsaw massacre
and the blowout in Australia’s fiscal deficit.
Henry points out that the Australian Treasury underestimated the 2011-12 deficit by $35 billion. The same Treasury that claimed during the 2010 election campaign that the Coalition had overestimated the contribution of its savings measures to improving the fiscal position by $7 billion over four years. That’s right, while Treasury waded into a political pond asserting that the Coalition made costing errors of $1.75 billion in a year, it made an error twenty times larger.
Wayne Swan owes the two accountants he attacked in 2010 an apology. The well-funded Treasury is no match for the estimating prowess of the accountants.