Friday, September 22, 2006

Every Little Bit (Doesn't) Help

Hard on the heels of yesterday's government debt update, the splendid Adam Smith Institute has published new estimates for that unfunded public pensions liability.

When we blogged in detail about this particular outrage back in March, we quoted the latest estimate produced by consulting actuaries Watson Wyatt- £960bn. ASI reckon the figure is even higher, at £1025bn. Yet another £65bn to add to our £1.8 trillion Real National Debt figure.

They also calculate that the government is making "new pension commitments to public sector workers each year worth more than £40 billion". At the risk of stating the bleedin' obvious, what that means is that overall public spending is understated by £40bn pa: part of public sector pay is not being included in the total annual expenditure.

It's funny money alright, but not very amusing.

No comments:

Post a Comment