Fed: Costello dismisses claims of errors in budget

AAP General News (Australia)
02-01-2006
Fed: Costello dismisses claims of errors in budget

MELBOURNE, Feb 1 AAP - An analysis claiming the federal government's budget surplus
projections were out by an average of 255 per cent was "completely mistaken," Treasurer
Peter Costello said today.

Mr Costello slammed a report by the Business Council of Australia (BCA) which made
the claims based on five years of budget forecasts, saying the mathematics behind the
analysis was wrong.

"It shows you can use a statistic for any purpose," Mr Costello told ABC Radio.

His comments come after the government revised this financial year's predicted surplus
to $11.5 billion - $2.6 billion higher than predicted in May.

Mr Costello said out of a total budget of $200 billion, the variation was marginal
and nothing like the 255 per cent error as claimed in the BCA's analysis.

"Commonwealth revenues are about $200 billion, Commonwealth expenditures are about
$200 billion. The one per cent error is $2 billion and two per cent is $4 billion," he
said.

"I must say I thought it was quite inventive the way whoever did it (the analysis).

"... the author of the report was completely mistaken.

"We are trying to forecast what a financial outcome will be as measured in September of 2007.

"When you've got to take into account the oil price, the exchange rate, the US economy,
inflation, the all ordinaries, employment - you can get within one or two per cent - it
amazes me actually how accurate it is."

AAP cmb/gfr/cjh/de

KEYWORD: BUDGET COSTELLO

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