Sep 30, 2013

Budget emergency? Not if you look at Hockey’s new numbers

The recently released budget outcome reveals a different economic landscape to what Joe Hockey described. For a start, it showed the largest year-to-year fall in the budget deficit ever.

Stephen Koukoulas

Economist, Per Capita research fellow and former Labor adviser

Australia has just recorded the most contractionary year for fiscal policy ever seen.

In releasing the budget outcome for 2012-13, Treasurer Joe Hockey and Finance Minister Mathias Cormann have revealed a range of very interesting records on the budget and fiscal policy not just for 2012-13, but going back to 1970-71.

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19 thoughts on “Budget emergency? Not if you look at Hockey’s new numbers

  1. Suzanne Blake

    Of course there is a budget emergency. The debt ceiling looks like blowing $300 BILLION.

    Thats around $48,000 for every taxpayer in Australia. Note taxpayer not welfare recipients.

  2. Thorn

    The real travesty here is that in 99.9% of the media (and I include the ABC in this) continually repeated the same old myths about Labor economic incompetence and Liberal success over and over for the last five years – regardless that the facts on spending and taxing by Swan compared to Costello have been available for all to read all this time and regardless that the GFC was crippling economies everywhere.

    If the media had been honest with the Australian people and not been preoccupied with pushing their own agenda (in spite of all the evidence to the contrary) then the level of optimism and economic activity would have been much higher.

    It is hard for people to feel comfortable spending when they had Abbott/Hockey/Robb and the media all saying that Australia was on the edge of ruin. For this reason Abbott’s period in power will be forever tarnished by his actions culminating with the 2013 election.

    I have never witnessed such a disgusting scorced earth policy as the one waged by the Liberals. They did not care a damn about the country as long as they gained power – the only conviction they had was that they had the right to rule.

  3. MG99

    All this criticism of Abbott and his team is too little too late. Recently the Fairfax media has a few articles with mild criticism of Abbott – specially his hiding the boats information and his debt and deficit harangues.

    Totally agree with @Thorn’s “scorched earth policy”. This resembles the behaviour of the Republicans in the US. I think the Liberals have copied the Tea Party antics.

    The Labor Party needs to develop strategies to handle this. Really tough considering 70% of print media, radio, TV and the ABC are so pro Liberal. We do not have a New York Times or liberal TV in Australia.

  4. bluepoppy

    This is what happens with a media that dictates the outcome of elections. Where is the proper analysis and scrutiny. There was never an emergency budget crisis. It is no surprise at all and just confirms what the ALP were saying prior to the election. Troubles is by then nobody was listening.

    The ALP are, and were, by no means perfect but the new lot is something to behold – and not in a good way. We already have a new government that seeks to act in secrecy and discarding all traces of transparent and accountable governments.

  5. klewso

    I don’t think “repeat a lie often enough, it becomes the truth” constitutes conventional “wisdom”?

  6. klewso

    …… “Conservative wisdom”? That’s different.

  7. Hamis Hill

    Which all adds up to an “illegitimate” government, won on lies, which has no option but to continue the lies.
    and of course supported by individuals with no commitment to, or respect for the truth.
    What could possibly go wrong?
    Oh, and supported by the palace eunuchs of the press, politicians in hiding, and constant strangers to the truth.
    To repeat, what could possibly go wrong?

  8. Daly

    I await this analysis, so factually done here, appearing on the front page of the Australian, Telegraph, etc. so that people can understand how they were deceived.

  9. Jimmy

    This article and another in the Age today by Kenneth Davidson – point out just how funny it is going to be to watch the Libs fibs about the state of the economy and various other things come home to roost.

    If there truly was a budget emergency (as Sb still bel i eves)why aren’t we getting the MYEFO now, why aren’t Hockey and Abbott swiftly moving to raise revenue and cut spending and why is Hockey talking of stimulous?

    The answer of course is because there isn’t a budget emergency but the govt will get cover from News Ltd to gradually change their position and the non thnkners (yes you SB) will gradually change with them until they are all calling for the govt to go deeper into debt “to fix the mess Labor created”

  10. cnewt27

    So Suzanne B, your point re “taxpayers not welfare recipients” what % of folks are both? Do I hear the phrase “entitlements”? Seems that those super women who will be getting $150,000pa to have a baby will fit into both categories.

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