Budget – Revenue versus Payments

Here is a chart I just created of the revenue against payments from the budget papers. See the downturn in revenue. Does anyone think that the Australian government did anything to cause that downturn?

Revenue vs Payments

The only way that I can see for the government to keep a surplus would be to completely slash spending or to increase taxation.

Can those who oppose a deficit please detail how they would keep a surplus?

Budget Fallout – Have Your Say!

Treasurer Wayne Swan has delivered his 2009 Federal Budget.

Widely tipped to be a “horror” budget, there wasn’t really that much horror in it all.

Everything was largely as we expected – pensioners get a boost, taxation benefits associated with superannuation contributions will take a hit.

And the Government intends to spend a truckload on “nation building for the future”.

No sooner had Tony predicted that this would be a phrase that we can expect to hear a lot more of in the future, we had Wayne Swan standing in front of a banner loudly declaring “nation building for the future”

Joe Hockey was his usual apoplectic self, however managed to hit home with a couple of points that may register with anyone who hasn’t realised that we’re in the midst of a global financial crisis.

BUDGET SNAPSHOTS AT A GLANCE:

Deficit of $57.593 billion

Unemployment to hit 8.25 per cent – one million expected to be unemployed.

Economic Growth to fall to -0.5 per cent of GDP

Inflation to average 1.75 per cent

First Home Owners Boost continued for six months

Small Business and General Tax Break increased to 50 per cent for order this calendar year
Infrastructure spending to total $22b

$8.5b for road, rail and port
$4.5b on new clean energy initiative
$5.3b on tertiary education, research and innovation

$2.5b over five years to drive hospital and health workforce reform

$3.2b from Health and Hospitals Fund to modernise hospitals and and improve cancer facilities

Private health insurance rebate reduced for higher income earners

Medicare Levy Surcharge increased

$731m over five years for paid parental leave scheme

Pension age increased progressively to 67 years by 2023

Single Pensioners to get extra $32.49 per week, couples to get extra $10.14 per week

New $600 a year Carer Supplement for all Carer Payment recipients, plus allowance

Extra $650m in funding for border protection

So what do you make of it all ..? Are we all doomed to eternal debt, or is this Budget laying the foundations for a difficult but achievable path for future prosperity…?