Debt and Deficit - Coalition Budget Emergency

[yibbida]

http://m.afr.com/p/australia2-0/hockey_mulls_separate_debt_for_infrastructure_1ToqpT20wDt403WUjOiQxL

Treasurer Joe Hockey is considering identifying government borrowings raised to fund infrastructure as separate from debt raised to cover the budget deficit as the Abbott government contemplates an infrastructure spending splurge.

All the above is a direct contradiction from what the Coalition said in opposition.

E.G: http://mobile.news.com.au/business/...rst-year-surplus/story-e6frfkur-1226292053397

"Based on current data, we will achieve a surplus in our first year of office and we will achieve a cash surplus in every year in our first term," he said.

Rather than use fiscal stimulus to achieve growth, the Coalition would base its approach on cutting government waste, reducing spending and paying down public sector debt, lowering tax, cutting red tape, restructuring industry and building greater ties with Asian trading partners.

 

[Footy Smarts]

The duplicity they've presented to the Australian people is scandalous. However it appears they're going to do the (somewhat) sensible thing and not slash and burn for a surplus which would put our somewhat fragile economy at risk. It's just a pity that this infrastructure spending appears to be going on hugely expensive "roads to nowhere". To think that these guys complained horribly about the school halls spending.

 

[year of the cat]

The biggest surprise is that some people may be surprised by this.

 

[medusala]

However it appears they're going to do the (somewhat) sensible thing and not slash and burn for a surplus which would put our somewhat fragile economy at risk.

Aesop.

 

[tazzietiger]

Infrastructure over the long term can contribute to growth and pay for itself. Borrowing record amounts to pay for welfare leads to nothing but a future budget emergency. Some people(majority seem to be ALP/Green supporters) clearly don't understand that you can't borrow forever.

 

[Gough]

Infrastructure over the long term can contribute to growth and pay for itself. Borrowing record amounts to pay for welfare leads to nothing but a future budget emergency. Some people(majority seem to be ALP/Green supporters) clearly don't understand that you can't borrow forever.

I think you will find that ALP borrowing was also for infrastructure, not welfare. Were did you get the idea that they borrowed only to pay welfare?

 

[medusala]

I think you will find that ALP borrowing was also for infrastructure, not welfare. Were did you get the idea that they borrowed only to pay welfare?

If the structural deficit is 5% of gdp then how could they not be? Have they increased infrastructure spending by 5% gdp per annum? If not then borrowing is for recurrent expenditure.

 

[blackcat]

Aesop.

mises

 

[JRoo]

If the structural deficit is 5% of gdp then how could they not be? Have they increased infrastructure spending by 5% gdp per annum? If not then borrowing is for recurrent expenditure.

Jes you struggle sometimes don't you Rupert?

 

[Admiral Byng]

Might as well stick an extra $15 billion the the infrastructure credit card and complete the NBN as intended.

 

[Pessimistic]

Good luck geting major projects under way within 18 months

 

[yibbida]

"@TheKouk: The government borrowed a further $800 million today: Tenure 10 years, yield 3.90%. Gross borrowing since election $7.9 billion"

 

[blackcat]

rex oconner @thekouk

???

 

[Brown Bottle]

It's not a lie if no-one believed it in the first place.

 

[yibbida]

It's not a lie if no-one believed it in the first place.

Lots of people believed it, have a read of the Budget thread, take note of what some posters said and see what they post from here on in

If the mods had any balls they would ban the hypocrites for a year considering what happened in here on election eve....

 

[DivideandMultiply]

Hahaha absolutely shameless, can people now stop pretending that either of these parties of crooks is majorly different.

Also that the mainstream commercial media in Australia, especially the Murdoch press, have any vestiges of credibility left.

 

[Brown Bottle]

Lots of people believed it, have a read of the Budget thread, take note of what some posters said and see what they post from here on in

If the mods had any balls they would ban the hypocrites for a year considering what happened in here on election eve....

But was it a "core" promise? Or a "non-core" one?

There are so many levels of political honesty that need to be unravelled before one can officially claim to have been caught in a lie

 

[Cap]

so people are unhappy because they are working on ways to explain the to Australian people what they are going to do, before they do it?

rather than poorly explain what they are trying to do, whilst they are doing it?I think that got the last Government booted out.

 

[Pessimistic]

Its good news.

Maybe theyll even listen to infrastructure australia, a body the liberals set up (dont quote me)

 

[yibbida]

so people are unhappy because they are working on ways to explain the to Australian people what they are going to do, before they do it?

rather than poorly explain what they are trying to do, whilst they are doing it?I think that got the last Government booted out.

It's more to do with the fact they are going to make the BUDGET EMERGENCY (tm) "worse" and try to hide the increased debt.

How do you think Joe Public is going to react when our debt has increased when they are under the impression there is a BUDGET EMERGENCY (tm)?

 

[Cap]

It's more to do with the fact they are going to make the BUDGET EMERGENCY (tm) "worse" and try to hide the increased debt.

How do you think Joe Public is going to react when our debt has increased when they are under the impression there is a BUDGET EMERGENCY (tm)?

they won't understand it.

 

[JRoo]

they won't understand it.

Maybe if the message is dumbed down to a simple 3 word slogan like "stop the debt" with no further explanation of what it actually means?

 

[Cap]

Maybe if the message is dumbed down to a simple 3 word slogan like "stop the debt" with no further explanation of what it actually means?

agreed. but it needs to be attached to general dislike of the government .

 

[AM]

When questioned about the so-called budget emergency in his presser, Joe was shown to be out of his depth. Suspect he won't see out the full term in that role. His saving grace might be that Turnbull is probably the only reasonable replacement and there's no way the Mad Monk will elevate him.

 

[medusala]

How do you think Joe Public is going to react when our debt has increased when they are under the impression there is a BUDGET EMERGENCY (tm)?

How can debt NOT increase when you inherit a budget deficit?

Imagine if Hockey actually did the right thing and cut spending by 4%gdp. The fanbois would go in to a Keynesian rage and say he was destroying the economy.

You cant have it both ways.