Statement 11: Statement of Risks

A range of factors may influence the actual budget outcome in future years. The Charter of Budget Honesty Act 1998 requires these factors be disclosed in a Statement of Risks in each Budget and Mid-year Economic and Fiscal Outlook. This statement outlines the fiscal risks and the contingent liabilities which may affect the budget balances.

 

The forward estimates of revenue and expenses in the 2003-04 Budget incorporate assumptions and judgements based on the best information available at the time of publication. A range of factors may influence the actual budget outcome in future years. The disclosure of these factors in this statement increases the transparency of the fiscal projections and ensures they remain 'on-balance' estimates.

Events that could affect fiscal outcomes include:

• changes in economic and other parameters;

• matters not included in the fiscal forecasts because of uncertainty about their timing, magnitude and/or likelihood; and

• the realisation of contingent liabilities.

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