Peter Martin has set out the types of ‘error’ Treasury identified in the Coalition policy costings.
The Charter of Budget Honesty sets out guidelines for election costings, in order to make sure they are done on the same basis. One forbids the counting of proceeds from expected ”second-round effects” such as a saving on the dole from a job creation program. The Coalition counted such an effect because it says the National Centre for Economic Modelling told it its program would take 51,000 people off the dole.
That and a similar ‘error’ amounts to some $3.5 billion. But I’m not sure the Charter of Budget Honesty forbids second round effects. Here are the criteria.
The following are standard conventions for the preparation of fiscal costings. Read more »


