tag:blogger.com,1999:blog-24338064.post2607975070983919299..comments2024-02-11T19:28:27.997+11:00Comments on Personal Reflections: Reflections on the 2015 Australian Mid Year Economic and Financial Outlook (MYEFO)Jim Belshawhttp://www.blogger.com/profile/10075614280789984767noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-24338064.post-71676590704511123992015-12-17T17:49:35.517+11:002015-12-17T17:49:35.517+11:00Some of the commentators are saying that the Morri...Some of the commentators are saying that the Morrison has stated that it cannot go into spending but must go into tax (revenue) cuts or possibly into deficit reduction. It's pretty unclear to me.2 tannersnoreply@blogger.comtag:blogger.com,1999:blog-24338064.post-42494432377030366082015-12-17T14:59:38.161+11:002015-12-17T14:59:38.161+11:00On 1, just into normal spend. On 2, if iron ore pr...On 1, just into normal spend. On 2, if iron ore prices are higher than expected, then the extra revenue generated must be quarantined, cannot be spent. The classic case of outcomes better than expected was the recent mining boom when revenue constantly outrun forecasts. <br /><br />On the last, you are right kvd. What it seems to mean, and I may be misquoting the exact wording, is that the the extra amount can then not be spent but must be quarantined in some way. There is some messy stuff in here, as there is in the stated target that that spend cannot increase as a proportion of GDPJim Belshawhttps://www.blogger.com/profile/10075614280789984767noreply@blogger.comtag:blogger.com,1999:blog-24338064.post-33195038472797386782015-12-17T13:55:28.843+11:002015-12-17T13:55:28.843+11:00second is the stated requirement that any gains th...<i>second is the stated requirement that any gains that come from parameter shifts, ie outcomes better than assumptions, should go to deficit reduction</i><br /><br />1) outcomes worse than assumptions - these go where?<br />2) any recent examples (of significance, on the national stage) of outcomes better than assumptions?<br /><br />And also, a 'deficit reduction' would already (practically speaking) have occurred by the time the 'outcome' eventuated, surely. So do they mean 'debt reduction'?<br /><br />kvdAnonymousnoreply@blogger.com