I know its not National per se that is responsible for deficit forecasting, but they are the ones in a position to do something about inaccurate forecasting so they should do it. Treasury projected the deficit for the first 4 months of the financial year to be around $2.5 billion. It was $4.4 billion. This is an unacceptable degree of inaccuracy at a time when effective management of the economy is essential.
Tax revenue in the four months to the end of October was $1.1 billion (6.3 per cent) lower than forecast. Corporate tax revenue was $784 million (28.0 per cent) lower than forecast and GST was down by $190 million (4.2 per cent) on forecast. So what are English and Key going to do about it? Who knows what these idiots will do, but prudent managers would start making accurate projections of where we are going, get real about their income, and take steps to rectify dangerous deficit trends.
Where are the government spending reductions that are necessary to adjust for reduced economic activity? When is English going to make an announcement on what he plans to do about the failure to accurately predict economic conditions and the government’s increasing level of debt? This is unacceptably poor management and English and Key need to stop the rabbit in the headlights act and bloody well do something.