Expect Another Australian Deficit Of Up To $15 Billion

Posted on Tue 03/12/2013 by


Bolt New 01By Andrew Bolt ~

Australian Prime Minister Julia Gillard And Treasurer Wayne Swan

Australian Prime Minister Julia Gillard And Treasurer Wayne Swan

Terry McCrann warns that Australia’s Julia Gillard led Labor Government will deliver another big deficit in its desperate last months:

[Treasurer Wayne Swan already has] a seamless record of five budgets and five budget deficits… adding up to $174 billion, with this year’s unfinished fiscal symphony still to be added on.

Some are predicting it’ll be a modest $5 billion, others up to $15 billion. I’d go at least that higher figure for two reasons.

First, as the debacle over the mining tax has shown – projected last May to raise $4 billion this year, adjusted to raise just $2 billion in the budget update in October, actually raised $126 million in the first six months – the figures were evaporating under their own steam.

But secondly, now that he’s abandoned – actually, finally told the truth about – this year’s budget bottom line, he might as well go for, for want of a better word, broke….

Even if they’d just stayed steady, the projected bottom line would have been a deficit of $5 billion, not the literally unbelievable $1.5 billion surplus. …

Over the next two months Swan will be trying desperately to [drag] … spending back into what’s left of this year, and pushing as much as he can into 2014-15.

So this year’s deficit can blow out to who cares what number, to keep next year’s down and hopefully be able to be fiddled into a surplus. Into a projected/promised surplus…

[Then there’s] all the increased spending the Government can’t help itself with adding. The Business Council has estimated the Government has made $49 billion of unfunded commitments.

Then there’s the little thing called an election.

Andrew Bolt is a journalist and columnist writing for The Herald Sun in Melbourne Victoria Australia.

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.

Read more excellent articles from Andrew Bolt’s Blog . http://blogs.news.com.au/heraldsun/andrewbolt/