Why chase this pipe dream of a surplus though?
Any economist worth his salt will tell you some of the cut backs in investment they have ear-marked are not necessary economically.
It's all politically driven.
That is a sign of weak leadership.
THE Baillieu government's budget surplus was built on a series of ''risky'' decisions to siphon hundreds of millions of dollars from publicly owned agencies, the Auditor-General has warned.
In a blow to the government's financial management claims, a report tabled in Parliament says the strategy of
ripping cash from publicly owned entities
that sit outside the budget accounting framework - including water authorities, WorkCover and the Transport Accident Commission - to deliver promised surpluses is threatening the financial viability of those agencies
. ''Relying on agencies outside the [general government sector] to support … revenue is a risky strategy,'' warns the audit report, which was tabled on Wednesday.
It says the approach depends on the ability of the agencies to raise revenue from consumers or go into debt to pay ''dividends'' to the government.
This ''potentially could risk the financial sustainability of those agencies''. The finding is a setback for the government, which has highlighted a series of budget surpluses as one of its proudest achievements.
It also appears to contradict claims by Treasurer Kim Wells that the decision to lift dividends had no impact on the financial health of the agencies.
The government brought forward an extraordinary $203.9 million in dividends from water retailers and Melbourne Water
in 2011-12. It also introduced special laws to take a $147 million dividend from the Victorian WorkCover Authority
.
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