Hon George Cash asks about the progress of the Treasury's review of forecasting models. Hon Kate Doust confirms the review was undertaken, a report published, and recommendations are being progressively implemented, with details in budget papers.

AnsweredQoN 261Legislative Council
Asked
8 May 2007
Portfolio
parliamentary secretary representing the Treasurer

QuestionView source ↗

TREASURY - FORECASTING MODELS REVIEW
I refer to previous comments by the Under Treasurer to review the forecasting models used by Treasury in an attempt to reduce the variation between forecasts of estimated and actual revenue and expenditure and ask whether this work has been undertaken; and, if so, what were the conclusions, and, if not, why not? Hon KATE DOUST

AnswerView source ↗

I thank the member for some notice of the question. A review of revenue forecasting was undertaken in 2005-06. A report of the review was published in March 2006, and a copy is available on the Department of Treasury and Finance’s website. Copies of the report were provided to all state members of Parliament on 26 April 2006 by the Under Treasurer. The review made 29 recommendations on forecasting methodology, governance, resourcing and communication that are intended to make the forecasting process more informed, systematic and transparent. The recommendations of the review are being implemented progressively. Recommendations implemented as part of the 2006-07 budget were outlined on pages 130 and 131 of 2006-07 budget paper No 3. Further refinements to the methodology and process have also been implemented in the 2007-08 budget, including in relation to forecasting Commonwealth Grants Commission relativities.
Hon KATE DOUST replied: I thank the member for some notice of the question. A review of revenue forecasting was undertaken in 2005-06. A report of the review was published in March 2006, and a copy is available on the Department of Treasury and Finance’s website. Copies of the report were provided to all state members of Parliament on 26 April 2006 by the Under Treasurer. The review made 29 recommendations on forecasting methodology, governance, resourcing and communication that are intended to make the forecasting process more informed, systematic and transparent. The recommendations of the review are being implemented progressively. Recommendations implemented as part of the 2006-07 budget were outlined on pages 130 and 131 of 2006-07 budget paper No 3. Further refinements to the methodology and process have also been implemented in the 2007-08 budget, including in relation to forecasting Commonwealth Grants Commission relativities.
I thank the member for some notice of the question. A review of revenue forecasting was undertaken in 2005-06. A report of the review was published in March 2006, and a copy is available on the Department of Treasury and Finance’s website. Copies of the report were provided to all state members of Parliament on 26 April 2006 by the Under Treasurer. The review made 29 recommendations on forecasting methodology, governance, resourcing and communication that are intended to make the forecasting process more informed, systematic and transparent. The recommendations of the review are being implemented progressively. Recommendations implemented as part of the 2006-07 budget were outlined on pages 130 and 131 of 2006-07 budget paper No 3. Further refinements to the methodology and process have also been implemented in the 2007-08 budget, including in relation to forecasting Commonwealth Grants Commission relativities.

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