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The government's dodgy budget savings

Discussion in 'General Chat' started by drsmith, Oct 31, 2012.

  1. drsmith

    drsmith

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    First on the list is the accelerated transfer of unclaimed monies from lost super, bank and insurance acounts.

    http://www.smh.com.au/opinion/polit...h-to-boost-budget-by-900m-20121022-280vy.html

    By counting it as recurrent revenue and spending it, the government is creating an unfunded liability on the balance sheet to the extent it is claimed in future. Worse for the government's balance sheet, the unclaimed monies accumulate interest at the CPI when/if ultimately claimed.

    The collection of these funds into a single source is in itself a good idea as is interest at CPI, but counting it as revenue is hardly sound financial management. It's not the property of the government after all.

    The reality is that this should only be counted as part of consolidated revenue only after a very long period and in the meantime, a cost booked against the budget for the CPI interest component.
     
  2. saiter

    saiter

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    I thought this was about the NSW government managing to "find" $1 billion.... Do the treasurers need some classes in Excel?
     
  3. drsmith

    drsmith

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    Loose change in comparison to what the feds have lost. ;)
     
  4. Miss Hale

    Miss Hale

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    I can't believe the dodgy accounting practices governments get up to :mad: It wouldn't be tolerated in a public company.
     
  5. basilio

    basilio

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    Really ??!! Some public companies are exceptionally good at creative accounting. Hugely inflated mastheads. Booking early profits.

    But having said that all budgets are subject to reality checks.
     
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