Underlying cash Outcome (1 Viewer)

[jky.]

what is it? Can someone explain please...

 

[jimmik]

the underlying cash outcome is one of two measures of the budget outcome (the other measure is the fiscal outcome). the difference between these two measures is that the underlying cash outcome is calculated as total revenue minus total outlays and net advances (ie it is excluding asset sales and other one off payments) whereas the fiscal outcome is calculated using the accrual method that includes government superannuation owed to its workers. thus the fiscal outcome is a more accurate measure of the budget outcome.

i hope that helps.

 

[underthebridge]

the underlying cash outcome is one of two measures of the budget outcome (the other measure is the fiscal outcome). the difference between these two measures is that the underlying cash outcome is calculated as total revenue minus total outlays and net advances (ie it is excluding asset sales and other one off payments) whereas the fiscal outcome is calculated using the accrual method that includes government superannuation owed to its workers. thus the fiscal outcome is a more accurate measure of the budget outcome.

i hope that helps.

hmmmmm i was taught that the underlying cash outcome you are describing is actually called the headline cash outcome. This was not focused on as much after the 1995/96 budget when a deficit was actually turned into a surplus but asset sales. The underlying cash balance uses some other accounting method, and isnt as accurate as the accrual method (fiscal outcome) but is focused on now due to distortions on the fiscal outcome caused by the GST

 

[jimmik]

maybe it's the same thing? i dont know, this was the definition i had written in my eco book..*shrugs*

 

[derek_]

hmmmmm i was taught that the underlying cash outcome you are describing is actually called the headline cash outcome. This was not focused on as much after the 1995/96 budget when a deficit was actually turned into a surplus but asset sales. The underlying cash balance uses some other accounting method, and isnt as accurate as the accrual method (fiscal outcome) but is focused on now due to distortions on the fiscal outcome caused by the GST

isn't the headline supposably the worst measure of fiscal policy, as it represents the one-off expenditure such as defence ... or something :/

 

[corro]

headline = load of shit
underlying = short term indicator
fiscal outcome = long term