Events can occur that render forward estimates in budgets obsolete in a relatively short time frame.
Given the increasing emphasis on forward estimate figures in government budgets, it is timely to examine past budgets to determine their accuracy. Take the Commonwealth budget released three years ago in May 2008. That budget projected a surplus for each of the 2010-11 and 2011-12 financial years of approximately $19 billion. The budget released yesterday now projects these figures as deficits, not surpluses, amounting to $49.4 billion and $22.6 billion respectively. Hence, the total turnaround in the budget outcome for the two years 2010-11 and 2011-12, from that projected three years ago, amounts to $110 billion.