Debt and Deficit - Coalition Budget Emergency

[yibbida]

http://www.theage.com.au/federal-po...n-communicating-policies-20141212-125yc9.html

The government will reveal a larger deficit when it hands down its mid year budget update next week, Treasurer Joe Hockey has confirmed, as well as a longer delay in returning the country's finances to surplus.

"I fully accept we could have done more marketing.

Yes Joe, that was the problem. You need to spend money on marketing like Christopher Pyne....

In an interview with Sky News on Friday, Mr Hockey said the budget had faced significant "headwinds" including a global economic slow down, falling iron ore prices and a hostile Senate.

This will be a no excuses government.... now who said that?


http://www.imf.org/external/pubs/ft/weo/2014/02/

Despite setbacks, an uneven global recovery continues. Largely due to weaker-than-expected global activity in the first half of 2014, the growth forecast for the world economy has been revised downward to 3.3 percent for this year, 0.4 percentage point lower than in the April 2014 World Economic Outlook (WEO). The global growth projection for 2015 was lowered to 3.8 percent.

What was the global growth forecast during the GFC that didn't happen?

 

[yibbida]

He has borrowed A LOT of money since he became treasurer.

$129 Billion now.

 

[Slax]

This is Liberal party talking points

Posted on May 15, 2013 in Homepage, Media, Newsletters | 0 comments
You can’t trust Wayne Swan, you can’t trust Labor
The record.
Actions speak louder than words, results more than rhetoric. Peter Costello summarised it perfectly this morning. Wayne Swan really is out of his depth.
Last year, Mr Swan promised no less than 500 times that he would deliver a budget surplus this year.
Joe Hockey called Labor on it years ago – this Labor Government and Wayne Swan will never deliver a budget surplus.
And tonight we saw Joe proved right. This marks Mr Swan’s fifth straight budget deficit.
We knew it was coming; Wayne Swan has form. The last few weeks have been full of Labor’s excuses.
Looking through the six budgets Wayne Swan has delivered, there is an eerie similarity with the promises and, sadly, the results.
In his 2008 Budget speech Wayne Swan said “We are budgeting for a surplus of $21.7 billion in 2008-09, 1.8 per cent of GDP,
the largest budget surplus as a share of GDP in nearly a decade”.
The result was a deficit of $27 billion.
In 2009 Wayne Swan claimed that a major aim of the 2009 budget was to bring it
back to surplus and pay down debt in the medium term.
The result was a deficit of $55 billion.
It wasn’t third time lucky for Australia or Wayne Swan in 2010: “Our strategy will see us return to
surplus in three years, three years ahead of schedule. The budget deficit of
$40.8 billion for 2010-11 is almost $6 billion less than the forecast at MYEFO
and $16 billion less than expected one year ago,” he said.
The result was a deficit of $48 billion.
In 2011 Wayne Swan said the budget would be back in the black by 2012-13. He
went on to add that the alternative – meandering back to surplus – would
compound the pressures in our economy and push up the cost of living for
pensioners and working people.
The result was a deficit of $44 billion.
Of course, this time last year, Wayne Swan attempted to fool everyone again –
yet he only managed to fool himself: “The four years of surpluses I announce tonight are a powerful endorsement. … This
Budget delivers a surplus this coming year, on time, as promised, and surpluses
each year after that, strengthening over time.”

Scott Ryan.
Liberal Senator for Victoria.

Continue your BS, in late 2007 we got hit by the biggest economic crisis since the early 1990s. We have been running at lower deficits as %GDP than most major western countries. Would you prefer USA style deficits?

I notice no mention of the fact most of the Liberal surplus' under Costello were actually false, propped up by the sale of government assets, like the gold reserve when the gold price was at a record low.

It is a myth that the Liberal Party can manage the economy any better than Labor, John Howard never recorded a single budget surplus under the Fraser government and Hockey won't do it in his first time and if re-elected second term either.

Liberal/Labor both useless. Just the Libs can't handle

 

[RUNVS]

What a surprise. The bank CEO's want to increase the GST while decreasing income tax

They said the GST was looking ragged and most wanted it increased or at least broadened, but offset by other tax cuts, including to income tax.

http://www.smh.com.au/business/bank...d-budget-hurting-economy-20141213-125ysq.html

 

[Todman]

What a surprise. The bank CEO's want to increase the GST while decreasing income tax



http://www.smh.com.au/business/bank...d-budget-hurting-economy-20141213-125ysq.html

GST gets paid to the states, won't help the Federal bottom line at all.

 

[yibbida]

http://www.watoday.com.au/federal-p...d-budget-deficit-of-401b-20141215-127ha2.html

The federal government's budget deficit will hit a staggering $40.4 billion this year, Treasurer Joe Hockey says, with the budget to return to surplus one year later than expected in 2019/20.

The deficit has blown out by $10 billion more than expected six months ago.

http://www.smh.com.au/federal-polit...face-on-surplus-guarantee-20130127-2dfn9.html

Mr Hockey told the National Press Club last year: ‘‘Based on the numbers presented last Tuesday night we will achieve a surplus in our first year in office and we will achieve a surplus for every year of our first term.’’

On Monday, Mr Hockey said he had not retreated from the pledge.

‘‘Our commitment is emphatic,’’ Mr Hockey told ABC Radio’s AM program.

‘‘Based on the numbers published today, we will deliver a surplus in our first year and every year after that.’’

 

[medusala]

Continue your BS, in late 2007 we got hit by the biggest economic crisis since the early 1990s. We have been running at lower deficits as %GDP than most major western countries. Would you prefer USA style deficits?

I notice no mention of the fact most of the Liberal surplus' under Costello were actually false, propped up by the sale of government assets, like the gold reserve when the gold price was at a record low.

USA deficit is 2.8% of gdp. Asset sales aren't always included in the budget. Just as Swan managed to keep a heap of costs out of the forward estimates.

You seem to neglect that Australia ran up $200bn odd of debt despite having far, far better terms of trade compared to every other western country bar possibly Canada due to the massive credit boom in China.

Yep, I agree the Libs are utterly useless. Hockey should slash spending far, far more.

Gutless. The GP co payment should have been higher for starters.

 

[Slax]

USA deficit is 2.8% of gdp. Asset sales aren't always included in the budget. Just as Swan managed to keep a heap of costs out of the forward estimates.

You seem to neglect that Australia ran up $200bn odd of debt despite having far, far better terms of trade compared to every other western country bar possibly Canada due to the massive credit boom in China.

Yep, I agree the Libs are utterly useless. Hockey should slash spending far, far more.

Gutless. The GP co payment should have been higher for starters.

USA debt is predicted to of dropped to 2.8% this year, it peaked at 10.1% in 2009.

Hockey needs to look at spending cuts and ways to increase revenue, the GP co-payment is a terrible idea. Creating a GP co-payment will have a two-fold effect of meaning people will delay visiting a doctor and will force more people into already overcrowded hospital outpatients. I've seen all too often how big the queues are in hospitals and it will only get worse with the co-payment. A better one to look at is the PBS system and work out a way to cut that by taking on big business. We also need to closely monitor how the UK go with the changes to the tax laws they are proposing to force the likes of Apple & Google who ship massive amounts of revenue offshore to pay no tax.

Australia is massively undertaxed and this is the primary problem in this country and I point the finger squarely at Howard & Costello. Australian tax revenue runs at 26.5% of GDP, the OECD average is 34.1%. In 2000 this was at just over 30%. Slashing spending without also raising taxes is something that solely helps the rich, not the average Australian, but then again Hockey & Abbott don't know any average Australians they think everyone earns $150k+ a year.


Another one to look at is the spending we make on being part of overseas military operations, I'm not saying don't get involved, but I am saying we shouldn't just say "Yes Sir. How many troops/aircraft do you want sir?" when the USA asks for help.

Abbott has also spent more on wasted inquiries than Labor did in their first 15 months, the "Pink Bats" Royal Commission is a complete waste of money $300m on a political stunt, and that is all it is a stunt. We already knew what the problem was, a scheme set up overnight that wasn't thought through and where no-one said hey wait a minute we need to plan this. The expansion of the building union RC is no better, asking them to look into unions more, but refuse to increase the scope to look at the construction companies who are just as bent. Why? because the construction companies donate money heavily to the Liberal party and unions to Labor.

 

[Maggie5]

Loved the announcement of the amalgamation of several department saving over $5 mill over four years then read where Brandis has made several appointments one of which to a Lib mate at a salary of $460,000. So many people may lose jobs but one mate is doing nicely.

http://www.smh.com.au/federal-polit...inue-a-wellknown-pattern-20141212-125tzi.html

"Former ACT Liberal Senator Gary Humphries has been appointed a full-time deputy president of the Administrative Appeals Tribunal, which reviews decisions made by government ministers, agencies and tribunals. The role has a salary of $460,000. Mr Humphries is currently a lobbyist with 1st State Government and Corporate Relations".

 

[Maggie5]

GST gets paid to the states, won't help the Federal bottom line at all.

Actually it does, States generate more money so that Federally they distribute less. Well known that they want States to take over education, health etc.

 

[Todman]

the GP co-payment is a terrible idea. Creating a GP co-payment will have a two-fold effect of meaning people will delay visiting a doctor and will force more people into already overcrowded hospital outpatients. I've seen all too often how big the queues are in hospitals and it will only get worse with the co-payment.

So in order to save $5, people will sit patiently in outpatients for over 6 hours. Boy are people cheap. Don't they know hospitals create a long waiting time so patients will seek non urgent medical attention at a medical clinic instead.

I would smoke more that $5 worth of cigarettes if I was waiting that long.

 

[Maggie5]

So nice to see Hockey and Corrman having a laugh before press conference yesterday.
Did the new budget announcement include the sale of Medibank?
I wonder what will happen when there are no more assets to sell? More cuts or will they actually work for the pay and look at options?

 

[Todman]

Actually it does, States generate more money so that Federally they distribute less. Well known that they want States to take over education, health etc.

So did you approved of Rudd's idea to take 30% of the revenue off the states for a take over of the hospital system?

 

[Maggie5]

So you approved of Rudd's idaea to take 30% of the revenue off the states for a take over of the hospital system?

Not sure where you are coming from, just corrected your post. FYI, never was a fan of Rudd.

 

[Todman]

Not sure where you are coming from, just corrected your post. FYI, never was a fan of Rudd.

I amended my post after re-reading it. I understand you were no fan of Rudd. Do you approve of the Feds taking a share of the GST ? Either directly or by reducing state grants?

 

[Maggie5]

I amended my post after re-reading it. I understand you were no fan of Rudd. Do you approve of the Feds taking a share of the GST ? Either directly or by reducing state grants?

Seriously haven't really given it much consideration, only that I don't think it is the right time to increase the GST.

 

[Slax]

So in order to save $5, people will sit patiently in outpatients for over 6 hours. Boy are people cheap. Don't they know hospitals create a long waiting time so patients will seek non urgent medical attention at a medical clinic instead.

I would smoke more that $5 worth of cigarettes if I was waiting that long.

The problem is that the people who are most at risk are the people on the poverty line. For a pensioner $5 is a presciption or a couple of meals, before you say it is just $5, for a pensioner who would visit a doctor multiple times a year it is a lot.

Want to fix the whole a better way, get rid of the superannuation perks that exist, look at salary sacrificing. If you want to balance a budget with the least amount of impact on society then hit those who can afford it not those who can't. Also fix the whole tax system, raise teh GST to 15%, increase the tax-free & Medicare thresholds, offset low income earners with better rebates and higher concession thresholds and add in an increase to pensions/unemployment benefits.

It's just Abbott & Hockey don't give a f*** about those struggling or even pensioners, they just want to look after their mates and those in their electorates who just so happen to best the wealthiest of any electorates in the country.

 

[Todman]

The problem is that the people who are most at risk are the people on the poverty line. For a pensioner $5 is a presciption or a couple of meals, before you say it is just $5, for a pensioner who would visit a doctor multiple times a year it is a lot.

The Prime Minister confirmed plans to reduce the Medicare rebate paid to GPs by $5 a visit — with the exception of children, pensioners and concession card holders — would be introduced via regulation.

http://www.smh.com.au/federal-polit...ports-to-save-35-billion-20141209-123i8z.html

What do you know, the poor are exempt.

 

[Slax]

Just ignore the next 6 years though because we are going to be having deficits until 2020 now according to the Libs.

 

[Todman]

If you want to balance a budget with the least amount of impact on society then hit those who can afford it not those who can't. Also fix the whole tax system, raise teh GST to 15%, increase the tax-free & Medicare thresholds, offset low income earners with better rebates and higher concession thresholds and add in an increase to pensions/unemployment benefits.

Yours is a recipe for a huge jump in the cost of living. Australia is already expensive enough to live. It might deterr refugees, if they knew how expensive it is to live here. A guaranteed way to screw farmers and other small business people (you know the productive ones in society).

 

[Slax]

The Prime Minister confirmed plans to reduce the Medicare rebate paid to GPs by $5 a visit — with the exception of children, pensioners and concession card holders — would be introduced via regulation.

http://www.smh.com.au/federal-polit...ports-to-save-35-billion-20141209-123i8z.html

What do you know, the poor are exempt.

So people have to pay $5 for a doctor to write a presciption for a pre-existing condition for which they have been taking medication for years and will continue to take the same medication in the same dose for years to come. How is that fair?

 

[Slax]

Yours is a recipe for a huge jump in the cost of living. Australia is already expensive enough to live. It might deterr refugees, if they knew how expensive it is to live here. A guaranteed way to screw farmers and other small business people (you know the productive ones in society).

That will appeal to large portion of the Liberal supporter base.

Farmers actaully get some pretty good tax breaks. If governments actually invested in a proper telecommunications network and transport infrastructure it would do far more for farmers than subsidies. Our rural roads are in dissary, telephone coverage is ordinary at best and non-existent in some areas (thanks to getting rid of analogue), internet speeds are on a par with a 3rd world country and you try and talk about helping farmers, the political party that should be helping farmers abandoned them years ago so they could sit in ministerial positions in the Howard government (but the irrelevance of the Nats is another issue)

 

[Todman]

It's just Abbott & Hockey don't give a f*** about those struggling or even pensioners, they just want to look after their mates and those in their electorates who just so happen to best the wealthiest of any electorates in the country.

You know how it is. If the poor can afford it then lets put the price up.

 

[Todman]

So people have to pay $5 for a doctor to write a presciption for a pre-existing condition for which they have been taking medication for years and will continue to take the same medication in the same dose for years to come. How is that fair?

You budget for it. Because you are not a pensioner you can afford to budget for it.

 

[yibbida]

Conservative supporters are so gullible. They believed all the rubbish Hockey and Abbott were peddling prior to the election. No doubt they will shrug off the facts and continue to believe in their blue tie wearing unicorns.


http://www.abc.net.au/news/2014-12-16/koukoulas-myefo-warning-fails-to-curb-spending-spree/5969364

Having been in control of the budget for 15 months, the MYEFO reveals that the Abbott Government has boosted government spending to stunningly high 25.9 per cent of GDP in 2014-15.

Quite extraordinarily, this is just 0.1 per cent of GDP below the 2009-10 level of government spending that incorporated the massive fiscal stimulus measures from the Rudd government, which were implemented to counter the global financial crisis.

On the tax and revenue side, Mr Hockey's MYEFO is projecting a surge of money into the Treasury coffers. From a recent low of 19.9 per cent of GDP in 2010-11, the level of tax will have risen to 22.0 per cent in 2014-15 and is forecast to rise to 23.1 per cent in 2017-18.

With budget deficits set to remain for the next five years, the level of net government debt is forecast to rise to 17.2 per cent of GDP, just below the post-war peak of 18.1 per cent of GDP in the aftermath of the early 1990s recession.