Billion-dollar NSW budget blunders

NSW Treasurer Mike Baird insists the NSW budget is still in deficit despite the auditor-general finding the state is $1 billion better off - partly because of embarrassing accounting and data entry errors.

The deficit of $337 million announced in this year's budget should in fact be a surplus of $680 million, with total revenues $600 million higher and expenses $400 million lower, the audit released on Wednesday found.



The blunders included errors in spreadsheets, data entry, end of year accruals and reconciliation processes.

Mr Achterstraat said while much of the variance was down to policy changes since the June budget, such as the recent workers compensation reforms, accuracy of the accounts was a major concern.

"Some departments provide very professional, high quality financial statements, but (from) other departments, it is a bit more rough and ready," he told reporters in Sydney.

"I would say a $1 million error is unfortunate. A $10 million error is undesirable. But a $100 million error is totally unacceptable.

"The NSW government is a billion dollar business, it is not a school tuckshop."

Mr Achterstraat said more accurate financial information could have had an influence over government policy - recently marked by billions in cuts to health and education.

"It is a bit like a cricket match," he said.

"If you're the bowling team, and you think the batting team has to get 300 runs, you bowl a certain way.

"Then if you find out five overs later that the people have been giving you the wrong information, you would have bowled in a very different way."

The Labor opposition, Greens and Unions NSW called for a halt to the state's education, health and public sector job cuts, which the government says are needed because of the deteriorating budget position.

But Mr Baird played down the shock surplus, saying once federal grants were taken out of the mix, the state was suffering an underlying deficit.

"It (the surplus) is not there. The underlying position of NSW remains in deficit," he told reporters in Sydney on Wednesday.

"I wish that we were in surplus, I wish there was a sustainable surplus, but the truth of the matter is we remain in deficit."

The government would not reconsider its unpopular education and health cuts, he said.

"The underlying position, when you take away the federal government grants, we are in deficit," he said.

"That's what we are faced with, and we are taking action to address that."

Mr Baird said "anyone would like to see less errors than were reported today", and steps were being taken to improve standards across government.

People could have trust in future financial figures produced by the government, he said.

"From my point of view, I will take every action possible to make sure they (the mistakes) are minimised going forward," he said.

"It is not something that can be done overnight; it is not something that can be done within a year, but will be done as soon as we possibly can."

The Public Service Association (PSA) of NSW agreed that the government's cutbacks should be reversed.

"Disregarding the question of how you lose a billion dollars, this is a welcome surprise for the people of NSW," PSA assistant secretary Steve Turner said.

"It means the O'Farrell government can restore security to 15,000 NSW families by reversing its indiscriminate public sector job cuts."

Link -
http://news.ninemsn.com.au/national/2012/10/31/11/13/nsw-1bn-better-off-after-bu...
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A few observations -

1) How is it possible, for this to happen?
2) Is it possible, for this to happen?

3) The Auditor-General says, total revenues were $600 million higher and expenses were $400 million lower, than those announced in the NSW budget,  but the NSW Treasurer says once federal grants were taken out of the mix, the state was suffering an underlying deficit.

Let me say this, Government figures need to be above reproach and they need to be accurate, for many reasons.

The Auditor General Refers to many errors in both Revenue & Expenditure whilst the NSW treasurer refers to not including Federal Government grants only.
I would suggest Revenue is Revenue, irrespective of its source and it should be included! 
But that still does not address the $400 million of Expenditure that also got missed?

Rather exposes the lie about how poor an economy they inherited.

Some sanity amongst fools - Peter Costello
http://www.2gb.com/index2.php?option=com_newsmanager&task=view&id=14880

The Federal ALP makes stuff ups after HUNDREDS of BILLIONS worth of stuff ups with their estimates without PN making a squeak

But when the State LIBs make an error of ONE BILLION - OMG it's the end of the world!!!??? 

Also remember that this is the reporting system that was left behind by the ALP

The question is blinding -

Why chase a small surplus and engage in a fire-sale, cutting welfare, cutting programmes which can have a long term negative effect?

Why put short term politics over long term economic management?

Why not have the gumption to stand and say that world ore prices have dropped, revenue has fallen therefore a surplus will be delivered later that originally expected?

Short term politics in place of long term economic stable management is a sign of weakness and its idiotic.

Grey wrote on Nov 1^st, 2012 at 8:47am:



I'll let you catch up on recent events given your isolation

So how do we return to surplus?

and don't rave on about better productivity in the people or the workers.

How do we pay for what our country needs with a deficit?

More money is needed for this and that and things that need to be fixed.

Unemployment for one