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May 08, 2006
Judging by all the leaks and hints the Costello 11th Budget doesn't look like much of a reform budget does it? Nor does there appear to be any rabiits in the hat that Paul Keating used to regularly pull out on budget night.
The budget surplus is around $5 billion greater than expected (it's around $17.6 billion) due to the commodities boom, with the money going to spent on tax cuts (to offset bracket creep), family benefits to working families. This will pump up the economy at a time when the Reserve Bank is reining in excess demand as the economy's capacity limits tighten and the current account deficit soars.
This will ensure a solid political base amongst 'Howard's struggling battlers' for the Coalition in the lead-up to next year's election.
Bill Leak
Oh, there are reports of a billion or so of dollars being spent on enhancing the nation's rail and road networks and new incentives for working mothers.
Systematic tax reform is off the agenda, as is a substantial investment in education and training to increase skilled workers with different skills, school education or the implications of an ageing Australia. The investment in the infrastructure is minimal, there is little by way of competition policy reform, and no overhaul in health care.
The mantra of good economic management by the Coalition is now starting to look more than a little ragged.
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If good economic management means sitting on your hands as opportunity passes you by, then these guys are the best ever.
17 billion that could be spent on rebuilding our run down systems (run down because of these ridiculous surpluses we have been achieving), will be spent on more middle class bribery, with the end result sucked up by petrol prices and a follow up interest rate rise to offset the extra household spending.
This government is way past it's use by date. Completely stale and unable to make any real hard yards.
Three words - lazy and incompetent.