Australian Economy – Another Budget Blow: $13 Billion In Savings To Be Written Off

Posted on Wed 02/15/2017 by

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Bolt New 01By Andrew Bolt ~

Another Budget blow, thanks to the Australian Labor Party, the Greens and a broken Australian Senate which gets its muscle by saying no.

With gross debt set to smash through $500 billion this year, we have a Parliament so paralysed by self interest that it is unable to save us:Debt

The Turnbull government is set to write off more than $13 billion in spending cuts after judging that it may no longer be able to book measures still being blocked in the Senate as savings in the budget.

The forced removal of the cuts from the budget books in the face of increasing Senate hostility would risk sending the budget further into deficit and widening the nation’s debt, now heading ­towards more than $600 billion within three years.

The government believes the commonwealth’s AAA credit ­rating is at serious risk of being stripped without the passage of the savings measures, dubbed by Labor as zombie measures, or a corresponding increase in tax and revenue measures…

Most of the blocked measures were included in the last May budget and again in the financial update last December, which means they are counted in the improvement of the budget bottom line to a surplus by 2020-21…

The government’s omnibus ­social security bill aims to save about $3bn over four years by cutting family tax benefits, using a portion of the proceeds to fund childcare and putting the remainder into a special account to pay for the National Disability ­Insurance Scheme. The changes sought by the Senate crossbench will wipe out most of the savings and leave little for the NDIS ­account, raising doubts in the government over whether it will be worth pursuing once the Senate votes on the policy in the coming weeks…

That position leaves the government without a budget saving to pay for a key policy, turning the debate in parliament towards other ways to raise money — including a proposal to increase the Medicare levy, which already has a component that partially funds the NDIS.

UPDATE

Worse is coming:

A government failure to underwrite the National Disability Insurance Scheme and plug a $4.1 billion funding gap in 2020 left by the former Labor government will pose more financial woes for Malcolm Turnbull.

The annual cost of the NDIS is estimated to jump by $10 billion to $32 billion at the end of the first decade after it becomes fully operational with the funding hole expected to exceed $7 billion a year by 2028-29 unless action is taken now.

And children are being left the bill:

Scott Morrison is ramping up his attack on Labor for failing to assist the government in the budget repair task, slamming it for endorsing an “intergenerational theft” that has quadrupled the public debt burden on Australia’s children to more than $90,000 each since the financial crisis a decade ago.

Federal government debt for every Australian aged under 18 is on track to exceed $100,000 within three years according to an analysis conducted by The Australian.

Andrew Bolt writes for the Herald Sun, Daily Telegraph, and The Advertiser and runs Australia’s most-read political blog. On week nights he hosts The Bolt Report on Sky News at 7pm and his Macquarie Radio show at 8pm with Steve Price.

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

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