Why off-budget boondoggles are raising red flags among economists
The government’s rising off-budget spending is drawing increased scrutiny from economists and the media. Is there really something "off" about the budget?
Two days before Treasurer Jim Chalmers’ mid-year economic and fiscal outlook (MYEFO) in December, political and economic reporters in the Canberra press gallery — including those at Capital Brief — were emailed a warning from independent economist Chris Richardson.
Richardson flagged concerns about how the media might interpret the budget update. For decades, journalists have focused heavily on the underlying cash balance — a measure Richardson and others advocated for to improve fiscal transparency.
“Unsurprisingly, politicians now game that new measure,” his emailed missive warned. He raised concerns about “hidden deficits” from spending “shoved off-budget,” including student loans, the National Broadband Network (NBN), housing funds and Snowy Hydro investments.
Richardson isn’t the only one raising concerns about off-budget spending in recent years.
