‘Farrago of lies’: Budget forecasts slammed as wildly unrealistic and misleading

The Australian Contributing Economics Editor Judith Sloan claims the government’s Budget forecasts rely on unrealistic assumptions about inflation and economic growth.

“The budget itself is basically a farrago of lies,” Ms Sloan told Sky News host Chris Kenny.

“There’s one table there where they say this financial year inflation is going to be five per cent, that’s probably a little low, but let’s agree with that, next year, so in a few months’ time it’s going to be two and a half per cent.

“The GDP forecasts were extremely generous, and pretty much double what the Reserve Bank is thinking, but that then feeds into the rest of the figures.”