Costings row heats up after PEFO release

Employment Minister Brendan O'Connor says time is up for Tony Abbott to come clean on his costings. Source: AAP

LABOR is piling the pressure on the coalition to release its policy costings sooner rather than later, after the unveiling of the final budget numbers before the election.

The federal government appears confident the opposition won't be able to afford all its election promises without resorting to European-style austerity measures that could hurt jobs and growth.

Shadow treasurer Joe Hockey said he would take time to consider the Pre-election Economic and Fiscal Outlook (PEFO) prepared by Treasury and Finance.

"These need to be carefully considered by the coalition," he said in Melbourne on Tuesday.

"We are going to go through things methodically, carefully, prudently."

The PEFO is prepared early in a federal election campaign as part of the Charter of Budget Honesty and lays the base for party policy costings.

The numbers largely mirror those in Labor's economic update released on August 2, pointing to slower economic growth, higher unemployment, bigger budget deficits and more government debt.

Opposition Leader Tony Abbott had no more excuses to delay his numbers, Treasurer Chris Bowen said.

"Release your costings and how you intend to pay for your promises," he said in Sydney.

Mr Hockey focused on commentary in the document outlining the international risks, saying it pointed to "substantial" downside and more budget volatility.

The risks surround the unresolved crisis in the eurozone, anxiety in financial markets about the unwinding of US monetary policy, lingering concerns about the recovery in Japan and economic developments in China.

The coalition has submitted more than 200 policies to the Parliamentary Budget Office for costing and a large number are still to come back.

Mr Hockey shrugged off the pressure being applied by Labor, noting that in 2007 and 2010 the ALP didn't release its costings until the evening before the election.

"We will do better than the day before the election," he said.

CPA Australia chief executive Alex Malley said the political "game playing" around costings was a distraction for voters.

"All Australians are looking for, from both major parties, clear and concise policies coupled with a vision for Australia's future," he said in a statement.

The PEFO confirmed the economy will grow at a below-trend pace of 2.5 per cent in 2013/14, with unemployment surging to 6.25 from 5.7 per cent now.

It warned the transition from a mining-led economy to broader activity might be bumpy.

"Against the backdrop of a still challenging global outlook ... this transition may not occur as smoothly as forecast," the PEFO said.

"While this transition has commenced, it is now expected to take longer."

However, sustained low interest rates, on the back of ongoing subdued inflation and a lower Australian dollar exchange rate, were expected to underpin a return to around trend growth in 2014/15.

This financial year's budget deficit is still forecast at $30.1 billion

There was a small $200 million increase in the surplus predicted for 2016/17, to $4.2 billion.

"Australia can't afford to have fiscal fools like Abbott and Hockey in the drivers' seats," Mr Bowen's predecessor Wayne Swan said.

"They represent an unprecedented risk to our economy and the services Australians rely on."

Mr Abbott later threw the spotlight back on the government, saying the PEFO shows a budget blowout, rising unemployment and spiralling debt.

"And what does Mr Rudd say to all that?" he asked, during an address to campaign volunteers in Brisbane on Tuesday night.

"The only thing that counts is the coalition's costings," he said, citing the prime minister's constant requests for the opposition to reveal its funding calculations.

"Well wrong. Wrong, wrong, wrong."

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