This sounds very much like our problem in the USA. Do all Liberal-Socialists take the same courses on how to rob us taxpayers? —ed
Conventional economic forecasts are also being severely tested by the persistence of relatively low government revenue.
What we know for a fact is this: in Australia, revenue to government for every unit of GDP has been at its lowest since the recession of the early 1990s.
In other words, for a given amount of economic income generated, less money is finishing in the public purse, to be used for the Australian people…
While within our medium-term fiscal strategy, spending is tightly constrained, the amount of tax collected from all sources – particularly from company tax – is significantly lower than independent forecasters or the Treasury have anticipated.
Compared to the public revenue which was forecast on the eve of the global financial crisis in 2008, what has actually been collected in tax since is far lower – on average, lower by more than thirty billion dollars every year.
Even compared to what was forecast once the worst of the global financial crisis had passed, annual revenue is tens of billions of dollars below what was expected…
Put another way, we are in an era when new structural calls on the Budget need to be associated with new structural savings.
Check the Budget forecasts over the years:
In 2008-09 and 2009-10, Labor massively increased government spending, taking it to a higher share of GDP than at any time since 1993-94. That surge was meant to be wound back once the economy recovered; but though growth was well above trend by 2011-12, the increase was never reversed, with new spending programs being ramped up as stimulus measures were phased out.
As a result, since Labor was elected, per capita government expenditure has increased by 3 per cent a year in real terms, more than double the rate at which it grew under John Howard.
(I’m wondering if we can send Barack Obama down there for a few years? Hmmm …
Remember, in Australia and England, the Labor Party is a Socialist leaning party just like our USA Democratic Party —ed)
Andrew Bolt’s columns appear in Melbourne’s Herald Sun, Sydney’s Daily Telegraph and Adelaide’s Advertiser. He runs the most-read political blog in Australia and hosts Channel 10’s The Bolt Report each Sunday at 10am. He is also heard from Monday to Friday at 8am on the breakfast show of radio station MTR 1377, and his book Still Not Sorry remains very widely read.