PEFO set to dominate election talk

The release of Pre-election Economic and Fiscal Outlook on Tuesday is likely to dominate questions to the leaders on the election trail.

Policy costings and budget gaps will be a focus on the election campaign trail on Tuesday as Treasury and Finance finally get their say about the economic outlook.

Every three years, under the Charter of Budget Honesty, the two departments are released from the shackles of government to issue their independent Pre-election Economic and Fiscal Outlook (PEFO).

The Rudd government's own budget update was released just over a week ago.

If there is a significant change the government will have a lot to answer for.

Its budget update statement cut growth forecasts and increased unemployment expectations, while predicting more debt and larger deficits over the next three financial years than in May.

However the Reserve Bank's own independent updated outlook released separately last Friday was consistent with the government's economic statement.

Prime Minister Kevin Rudd is expected to start the day in Townsville while Tony Abbott will kick off from Melbourne.

Labor wants the coalition to reveal what its policies will cost. The coalition says it will consider the PEFO numbers first.


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Source: AAP


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