The site was down when it came out, so this is a bit late.

There were several articles on the front page of the Australian. The consensus seemed to be that the budget would fight inflation, but may not have gone far enough. One author thought that the Howard government had responsibility for all the interest rate increases up until now, but Labor will be responsible for any more. The Australian was unusually supportive of the Labor party and several authors indicated they thought the budget was a big improvement on the last few from the coalition, which were little more than vote buying handouts that contributed to inflation.

freediver wrote on May 17^th, 2008 at 5:28pm:

One author thought that the Howard government had responsibility for all the interest rate increases up until now,  . . .

Do you have the link to that article by Therese Rudd?

I've got the paper at work. I'll give you the link on Monday.

deepthought wrote on May 17^th, 2008 at 9:13pm:

freediver wrote on May 17th, 2008 at 5:28pm: One author thought that the Howard government had responsibility for all the interest rate increases up until now,  . . . Do you have the link to that article by Therese Rudd?

Well it was probably Paul Kelly , he said the same thing on insiders last sunday, dont get to excited deepy, I dont think the poison dwarf or piers (I cant keep my hands to myself) have jumped ship just yet , Piers is still spouting his lies and inuendo about  and people like you are still buying it.

wrote on May 18^th, 2008 at 1:03pm:

deepthought wrote on May 17th, 2008 at 9:13pm: freediver wrote on May 17th, 2008 at 5:28pm: One author thought that the Howard government had responsibility for all the interest rate increases up until now,  . . . Do you have the link to that article by Therese Rudd? Well it was probably Paul Kelly , he said the same thing on insiders last sunday, dont get to excited deepy, I dont think the poison dwarf or piers (I cant keep my hands to myself) have jumped ship just yet , Piers is still spouting his lies and inuendo about  and people like you are still buying it.

I don't know who the poison dwarf is and I rarely read Piers Ackerman.   However if I say anything wrong you be sure to correct me won't you.  If you can.   ;)

deepthought wrote on May 18^th, 2008 at 1:13pm:

wrote on May 18th, 2008 at 1:03pm: deepthought wrote on May 17th, 2008 at 9:13pm: freediver wrote on May 17th, 2008 at 5:28pm: One author thought that the Howard government had responsibility for all the interest rate increases up until now,  . . . Do you have the link to that article by Therese Rudd? Well it was probably Paul Kelly , he said the same thing on insiders last sunday, dont get to excited deepy, I dont think the poison dwarf or piers (I cant keep my hands to myself) have jumped ship just yet , Piers is still spouting his lies and inuendo about  and people like you are still buying it. I don't know who the poison dwarf is and I rarely read Piers Ackerman.   However if I say anything wrong you be sure to correct me won't you.  If you can.   ;)

The poison dwarf sounds like another name for *that little Posion Gnome!*

 ;D :D ;)

deepthought wrote on May 18^th, 2008 at 1:13pm:

wrote on May 18th, 2008 at 1:03pm: deepthought wrote on May 17th, 2008 at 9:13pm: freediver wrote on May 17th, 2008 at 5:28pm: One author thought that the Howard government had responsibility for all the interest rate increases up until now,  . . . Do you have the link to that article by Therese Rudd? Well it was probably Paul Kelly , he said the same thing on insiders last sunday, dont get to excited deepy, I dont think the poison dwarf or piers (I cant keep my hands to myself) have jumped ship just yet , Piers is still spouting his lies and inuendo about  and people like you are still buying it. I don't know who the poison dwarf is and I rarely read Piers Ackerman.   However if I say anything wrong you be sure to correct me won't you.  If you can.   ;)

OH sorry I thought you followed politics, the HON PJ Keating named Glenn Milne the poison dwarf years ago. Your wise not to read pies porkys ,some of his storys take fiction to a higher level.

wrote on May 18^th, 2008 at 4:04pm:

deepthought wrote on May 18th, 2008 at 1:13pm: wrote on May 18th, 2008 at 1:03pm: deepthought wrote on May 17th, 2008 at 9:13pm: freediver wrote on May 17th, 2008 at 5:28pm: One author thought that the Howard government had responsibility for all the interest rate increases up until now,  . . . Do you have the link to that article by Therese Rudd? Well it was probably Paul Kelly , he said the same thing on insiders last sunday, dont get to excited deepy, I dont think the poison dwarf or piers (I cant keep my hands to myself) have jumped ship just yet , Piers is still spouting his lies and inuendo about  and people like you are still buying it. I don't know who the poison dwarf is and I rarely read Piers Ackerman.   However if I say anything wrong you be sure to correct me won't you.  If you can.   ;) OH sorry I thought you followed politics, the HON PJ Keating named Glenn Milne the poison dwarf years ago. Your wise not to read pies porkys ,some of his storys take fiction to a higher level.

Actually I am very interested in politics, which is why I never took any notice of Paul Cheating.  He's not a politician's bottom orifice.

But wasn't he the adenoidal bozo who rorted the ATO when he sold his piggery and who 'forgot' to lodge his tax returns?

The four front page articles are linked below. The only other thing on the front page was a dot point summary and photo.

main story:

Mild budget cuts as Treasurer delivers all poll promises

http://www.theaustralian.news.com.au/story/0,25197,23695702-601,00.html

WAYNE Swan has taken a knife to John Howard's middle-class welfare in a budget delivering Kevin Rudd's election promises in full and banking $41 billion to spend on health, education and infrastructure.

The Treasurer also delivered a greater-than-expected $21.7 billion budget surplus, worth 1.8 per cent of GDP, which he said should satisfy the Reserve Bank and reduce pressure on interest rates.

And in another major departure from the approach of his predecessor, Peter Costello, Mr Swan said he would invest the budget surplus - which dwarfed the Treasurer's target of $17 billion - as part of $41 billion to be locked away in three new investment funds for use in the future.

The $20 billion Building Australia Fund, the $10 billion Health and Hospitals Fund, and the $11billion Education Investment Fund would not be used this year to avoid placing further pressure on inflation by putting money into the economy.

The decision to quarantine the money and delay spending is in line with Labor's central economic argument that reckless spending by the Howard government was partly responsible for eight consecutive interest rate rises to the current 12-year high of 7.25 per cent.

But Access Economics director Chris Richardson warned last night the measures might not be enough to curb inflation. "The risk is that the economy will continue to travel faster and that interest rates won't have been successful in slowing much of Australia," he said. "They will hurt a bunch of people, but lots of Australia is still travelling at speed. The risk is the economy grows faster, employment grows faster, wages and prices grow faster and, even with the cuts in this budget, interest rates may have to go up."

Mr Swan said he found the notion of high-income earners being paid government welfare "impossible to defend on any grounds". "For too long, working families have watched the proceeds of the boom directed elsewhere in the form of tax cuts skewed to those already doing well," Mr Swan said.

In his speech, Mr Swan said some Australians had been asked to bear a greater burden than others. "But in the end, if we're to beat inflation and build prosperity, we have no choice. We simply cannot go on as before, spending irresponsibly and allowing inflation to build."

---

RHS of front page:

Trade-off will make or break Labor

The optimism is mirrored in Wayne Swan’s declarations that the budget “is designed to fight inflation”, while “we tip the scales in favour of working families”. This is a high-wire act. It will finish either in a standing ovation or a fall. From this point, any interest rate increases will be owned by Labor.

The surplus of 1.8 per cent of GDP is the highest ratio for nearly a decade. Spending growth has been cut by two-thirds from Howard’s last days. All Labor’s new spending is offset by spending cuts.

The budget reality dismisses the phoney symbolism of recent days. This is not a Robin Hood budget. It is not an attack on middle-class welfare. It does not involve a major dismantling of Howard government programs. Indeed, the spending cuts are careful and targeted to minimise electoral backlash.

Labor can boast a superior fiscal discipline than existed in Howard’s last years and deeper support for fairness via limited means-testing.

---

Bottom left:

Pressure will remain on monetary policy

http://www.theaustralian.news.com.au/story/0,25197,23695703-30538,00.html

According to Wayne Swan, Reserve Bank governor Glenn Stevens will be happy with the outcome.

Stevens is unlikely to contradict him, certainly not publicly, and in any case would probably agree with Swan's description of the fiscal stance of his first budget as "a mild tightening".

However, it is also true that it could have been much worse, and on its track record in its final years, under the Howard government it would have been.

By quarantining the revenue windfall, as it promised, the Government has allowed the budget's economic stabilisers to work.

As for Swan's promise of a new era of economic management, the budget is heading in the right direction, but it will take more than one budget before we can sensibly make a judgement on how successfully it will be delivered.

---

Bottom right:

Spending slayer more a prodder

http://www.theaustralian.news.com.au/story/0,25197,23695700-5017094,00.html

WAYNE Swan wants to feel your pain. The Treasurer may still be talking tough on fighting inflation but his budget figures reveal a decidedly more gentle touch.

That was the day it came out but in general reception of the budget when the reality hit home is that of disappointment, unhappiness and disgust.

There have been many, many negative articles.  The people don't like it.  Today the results of a survery . . . .




Quote:

Budget measures miss target Less than a third of households with kids feel better off 41 per cent of those aged over 50 pessimistic, poll shows Budget 2008 - All the winners and losers PRIME Minister Kevin Rudd's "working families" Budget has failed to impress many of its targets, an exclusive opinion survey has found. Nearly 70 per cent of households with children fear they will end up being worse off or are unsure about the Budget, Galaxy Research found in weekend polling. Less than a third of households with children - 31 per cent -  believe they will be better off from last Tuesday's Budget, while 25 per cent said they would be worse off and 44 per cent were uncommitted. Just 23 per cent of all voters said they would be better off and a third said they would be worse off.  And more than a third of those earning under $70,000 a year said they thought their finances would suffer. The biggest worriers were older Australians, pointing to Budget disappointment among pensioners. Some 41 per cent of those aged over 50 were pessimistic about the Budget. Cardboard Kev kills off the hopes of Australians

Even the first response was not 'it's good', but rather, 'it's OK, better than what we had under Howard, and could have been a lot worse'.

In any change there will be winners and losers. The losers are always the loudest, and people have a tendency to focus on what they lost and ignore what they gained.

59% over 50 do not feel pessemistic? Thats awesome when taken in context with todays apparently beatup headline about "grey rage".
Obviously the majority of them realise that nothing was taken from them and they in the same position they were under the Coalition.
Of course, Rudd has promised a review and you can bet he'll find something nice for them before the next election.

As for the coalition, well what a mess they've made of their budget reply. They have now gone behind Labor in economic management- the only area they still led after the election.
It looks like they are going to have many, many years to adapt to life in opposition.

freediver wrote on May 19^th, 2008 at 7:57pm:

Even the first response was not 'it's good', but rather, 'it's OK, better than what we had under Howard, and could have been a lot worse'. In any change there will be winners and losers. The losers are always the loudest, and people have a tendency to focus on what they lost and ignore what they gained.

Most think it stinks and I agree with them.  Look at the first statement "Nearly 70 per cent of households with children fear they will end up being worse off or are unsure about the Budget"

That's not even OK when 70% of the 'working families' Plastic Wayne droned on about last week fear they will be worse off or are unsure about their future with this allegedly 'working family' oriented budget.  Economists can bump their gums all they like and moan about internalising externalities but that kind of mumbling means nothing when the household budget creaks with dismay in Cardboard Kev's Liebor Horrorland.

John Howard created a world class economy that Australians prospered under - Cardboard Kev and his Merry Manglers are destroying it.  And the people agree.  

Alex wrote on May 19^th, 2008 at 8:04pm:

59% over 50 do not feel pessemistic? Thats awesome when taken in context with todays apparently beatup headline about "grey rage". Obviously the majority of them realise that nothing was taken from them and they in the same position they were under the Coalition. Of course, Rudd has promised a review and you can bet he'll find something nice for them before the next election. As for the coalition, well what a mess they've made of their budget reply. They have now gone behind Labor in economic management- the only area they still led after the election. It looks like they are going to have many, many years to adapt to life in opposition.

Not quite Alex.  41% do feel pessimistic but it doesn't mean the rest are filled with joy.  It could mean the 59% are unsure because the media are still swallowing for Kevvy and pumping out fantasies about the budget.  The real test comes when they are faced with the reality of the budget.  Then it may well be that 100% are suicidal.

Welcome to OzPolitic Alex.

Even the murcury is plugging Rudd, who manages to be both 'fiscally responsible' and politically canny, unlike Nelson who can only manage cheap populism.

http://www.news.com.au/mercury/story/0,22884,23712385-5006550,00.html

But, look at the fine print a bit, and it becomes clear that Mr Swan and Prime Minister Kevin Rudd are not just being fiscally responsible in making these mega-cuts to political office staff.

There is a fair bit of hard politics being played too -- because the 33 per cent reduction only applies to "ministerial and Opposition staff".

That is, every politician who is not a Labor representative -- be they senators or House of Representatives members, Liberal or National Party -- is about to lose one in three of their political advisers and personal staff.

---

http://www.crikey.com.au/Politics/20080521-The-25-billion-debt-and-expansion-and-tax-cut-that-wasnt-in-the-budget.html#comments

The $25 billion debt expansion and tax cut that wasn’t in the budget
Stephen Mayne writes:

The Rudd government took budget leaks and spin to a new level ahead of last Tuesday’s budget, but yesterday we discovered the media manipulation extended to actually delaying important debt and tax announcements until after the budget.

Wayne Swan blithely slipped out this release yesterday revealing that Federal debt would be expanded from $50 billion to $75 billion and the 10% withholding tax would be abolished on state government debt.

Think about it for a moment. Shouldn’t that announcement have been made last Tuesday night? Balance sheet management and tax cuts are the bread and butter of budgets but the Labor spinners clearly didn’t want any media focus on Commonwealth debt, let alone a $25 billion expansion.

It worked a treat as the tabloids missed the yarn. The Australian’s John Durie was the only commentator who weighed in, including this telling disclosure:

State government paper on issue has increased by some 40 per cent over the past five years and some 66 per cent of it is sold to offshore investors.

So there you have it, the biggest contributors to Australia’s soaring $610 billion foreign debt in recent years have been Labor state governments and now they’ve got a much more expensive refinancing exercise given the global credit crunch.

It’s hard not to see yesterday’s announcement as part of a continuing state government bailout. State debt is rising so quickly that we’re now seeing desperate privatisation moves in Queensland and NSW and increasing numbers of public private partnerships on hospitals, roads and other normal state government functions.

The Building Australia Fund, along with the health and education funds, was Federal Labor’s first move to relieve the cash-strapped states of these burgeoning infrastructure bills, the sort of bills which come with a booming economy and fast growing population.

Now we’re seeing tax breaks on state debt for foreign lenders at a time when the various Labor governments are going cap in hand like never before.

Swan’s announcement also included this:

Because of the additional resources to be held by the Australian Office of Financial Management, the Government will change its investment powers to allow it to invest in a broader range of assets than under its current mandate. At present the AOFM invests in term deposits with the Reserve Bank.

What odds that will include state bonds? Are the Feds borrowing an additional $25 billion that will be on-lent to their state Labor mates?

At least the announcement will hopefully force journalists and commentators to admit the Commonwealth does carry some debt, rather than produce lines like this from George Megalogenis in The Australian last week:

Mr Swan is the first treasurer in history with no commonwealth debt to cover. There is no borrowing to pay off.

Err, no. Labor left behind a $96 billion debt in 1996, Peter Costello paid almost $50 billion back and now Labor is pushing it back up to $75 billion. Sure, you have to also consider the asset side of the Federal balance sheet, but can we also please stop pretending there is no Commonwealth debt?

---

the press release:

http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2008/058.htm&pageID=003&min=wms&Year=&DocType=&source=cmailer

Increasing Commonwealth Government Securities
To Bolster Australia's Financial Markets
Today I announce that the Government will increase its issuance of Commonwealth Government Securities (CGS) as part of the Government’s commitment to the effective operation of Australia’s financial markets.  

The Government’s decision to increase issuance follows consultations with market participants about the adequacy of the supply of CGS.  

The Rudd Government is committed to ensuring that Australia’s financial markets continue to perform strongly and are a leader in the Asia-Pacific region.  The Australian Government’s budget surpluses mean that we do not need to issue securities to finance spending, but Treasury Bonds play a special role by providing the lowest-risk, highest-quality instrument in financial markets.  

Because they are risk-free, Australian Government Treasury Bonds are the benchmark used by participants in Australia’s financial markets to set interest rates beyond the short end of the yield curve, including in the bond futures market.  The Australian Government is committed to ensuring that its bon

http://news.smh.com.au/national/govt-issues-warning-to-senate-20080612-2p75.html

The federal government has again warned of consequences for the opposition if it blocks key budget measures in the Senate.

The government wants to pass 39 pieces of legislation relating to Labor's first budget in the eight parliamentary sitting days remaining before the lengthy winter break.

But the opposition, which still controls the upper house, has indicated it may stand in the way of some of those measures.

Government Leader in the Senate Chris Evans said delay would cost the government $300 million in lost revenue.

"If they say six months after losing an election that they're going to frustrate our capacity to keep downward pressure on inflation and interest rates, that will come down on their heads," Senator Evans told ABC television.

Asked whether he was hinting at a possible double dissolution election, Senator Evans said: "This is not about double dissolution elections, it's about a budget.

"I think the public will understand they are fundamentally undermining the government's capacity to deliver the sort of economic program we promised to deliver."

Senator Evans said the government was not asking for anything unrealistic.

"Every other government has been able to get its budget through by the end of June."

"This is about the government being able to deliver its budget, it's not about complex pieces of legislation or broad social issues."

---

Coalition delays budget car tax hike and gay law change

http://www.theaustralian.news.com.au/story/0,25197,23883745-601,00.html

LUXURY-CAR buyers face a reprieve from July 1 tax hikes but same-sex couples will have to wait longer for the removal of legal discrimination after the Coalition used its Senate majority today to delay budget measures.
The Rudd Government has accused the Coalition of economic vandalism after it delayed the introduction of budget measures contributing over $200 million to the surplus.

"We need a strong surplus to fight inflation and invest in the future but today the Liberals failed a very important test on economic responsibility,'' Mr Swan said in a statement to The Australian Online.

"By blocking parts of the budget in the Senate they proved that, given the choice between responsible budgeting and cheap politics, they will choose cheap politics every time.

"Their political game-playing will see $284 million come directly off the budget surplus - and $22 million in lost revenue from the luxury car tax changes alone.

Eleven budget-related bills were today referred to Senate committees, scuttling the Government's plans to have the draft laws passed by the end of next week.

Measures to be examined by committees include an end to the 31-year-old excise exemption on condensate, the national FuelWatch scheme, plans to lift the Medicare levy surcharge threshold and the luxury car tax changes.

---

RBA not so reserved as Labor gets a tick

http://business.theage.com.au/rba-not-so-reserved-as-labor-gets-a-tick-20080617-2s84.html

CAN you hear that cheering in Canberra?

The Reserve Bank has given Labor's first economic blueprint an effective tick of approval.

In a shift away from the typically subtle central banker speak, the RBA said at its June meeting that the board believed Wayne Swan's first budget as Treasurer was "mildly contractionary" because of the build-up in the surplus.

This is a significant endorsement for Labor.

Central bankers are notoriously shy of directly reacting to a government's budget. The best Australia has had in the past were guarded comments from Ian Macfarlane that some of Peter Costello's tax cuts could add stimulus to the economy.

It was left to the observer

to extrapolate that, given the economic conditions at the time, the governor was none too pleased that demand was being pumped into the economy when his job was to cool it down. Macfarlane never clearly said that though; it was up for interpretation.

The Glenn Stevens approach is more direct: "Measured in terms of the change in the surplus, fiscal policy was expected to impart a mildly contractionary effect on the economy in 2008-09."

There goes the Opposition's budget attack. Brendan Nelson and Malcolm Turnbull have taken the approach that Labor's first budget was a high-spending, high-taxing return to old-fashioned Labor economic management that would put pressure on interest rates.

But the RBA has knocked that contention out of play. The emphasis on "mild contractionary effect" is significant.