History …

The budget’s in and the love media does its best …

Cornered Labor chooses brave way out

thunders the Silly Morning Herald. Under which, there is a lengthy article that does its best to be kind but can’t quite draw the veil over Labor’s utter incompetence admitting along the way that most of the measures in the budget are unlikely to pass into law before the election and …

No, the purpose of this budget is not vote-buying – it is reputation-rescuing, a last-ditch attempt to influence what history will say about the Rudd-Gillard government  as an economic manager.

But there are savings …

The strength of this budget – should it come to pass –  is that Swan has found sufficient saving measures (90 per cent of them tax increases) to cover the cost of the painfully slow phase-in of the disability insurance scheme, the Gonski school funding reforms and other new spending measures.

… well not so much savings actually tax increases.

The SMH poll reveals …

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In the Fin Review Laura Tingle also plays up the heroism …

Swan’s bold retreat in face of political defeat

… and compares the budget with Russia’s scorched earth policies. She perhaps didn’t stop to think that the scorched earth in question isn’t only the country the new government must march over, it’s also the country we poor peasants have to live in.

At the same time, it is a strategy that locks in its legacy reforms in education and disability.

The ALP have been in power since Saturday 24 November 2007, their so called legacy reforms are not yet in place. A treasurer who cannot budget a year in advance pretends to plan the first ten years of these twin embryos lives! Give me a break.

Colour and movement, like everything else this government gives us, it’s been spun so hard it comes out dizzy. It does serve though, to keep us from thinking about the $1.1 billion dollar surplus promised last year, which over recent weeks has burgeoned auction style into a $17 billion deficit and finally comes in at $19.4 billion.

History beckons, Mr Swan …

More …

I heard a commentator on the ABC say that the problem for a treasurer is that, and I paraphrase …

people want him to spend more on education, more on defence, more on disability …

I thought, yes and I know just the moron to do it.

Debtski …

Total tax revenue last financial year … $317 billion.

Projected for this year … $340 billion.

Increase over last year 7.25%.

Yes, I said increase. Mr Swan and Miss Gillard are crying woe is us because of an unexpected fall in government revenue. If you expect more than a 7.25% increase in annual income you may well be disappointed!

There are three things to consider expenditure, expenditure and expenditure. These are the key to the budget black hole.

And the government continue to promise plenty of expenditure …

World’s greatest treasurer …

Peter Costello gives an insight into the performance of the world’s best in the Sydney Morning Herald, the article is well worth reading in full.

Wayne Swan originally announced the 2012-13 budget surplus on May 11, 2010. He has heralded it in each budget and midyear review since. Which makes Monday the sixth time he’s announced it. It’s a forecast surplus of $1.1 billion. Never before in the history of budgeting has so little been promised so often.

We will not know until September 30, 2013 whether this surplus has been achieved. And if it is …

Over four budgets from 2008, deficits have cumulated 12.8 per cent of gross domestic product. Taking this year and the following three budgets, this will be followed by cumulative surpluses of 0.8 per cent (provided the economy grows at trend). Four years of surplus will pay back 1/16th of the four years of deficit. At that rate it would take half a century before we get to the stated goal of “surplus on average”.

As well as the promised “surplus” another of the government’s stated ambitions …

… is to “improve the government’s net financial worth over the medium term”. This measure includes government debt and its superannuation liabilities. Since it decided to set this goal, net financial worth has plummeted. You see, it is not just that the government has racked up debt. The Commonwealth does not even pay the full cost of its staff. It is not paying the superannuation component of public service entitlements. Nor does it count this as a cost in its budget. If a private employer tried to do this they would be prosecuted. It’s the kind of thing that drives the private sector wild. While the government is telling employers to lift superannuation contributions for staff, it is not funding its own superannuation schemes.

Personally, I think Wayne has got Buckley’s of delivering any surplus at all … he’ll be spinning like a top all the way to an election held just early enough to keep the populus from learning the true state of our finances.

Brace yourself …

$20 billion, what could you get for $20 billion?

Well now, $15 billion will get you a Building the Education Revolution and  pink batts giveaway. You could hand out the other five in cash giveaways.

Or the whole lot would buy you half an NBN.

Actually, you’ll get a whole lot of pain …

Wayne has a surplus of pain.