Despite all their rhetoric and hyperbole, both debt and deficit has blown out under the Abbott Government

THE ABBOTT GOVERNMENT HAS ABANDONED all pre-election commitments to reduce the nation’s ‘skyrocketing debt’. Borrowings have increased dramatically since the last election.

Now we know by how much.

Debt has increased by 13.7% over Labor’s levels. Interest payments have risen a staggering 28.6% to more than thirty million dollars per day — in just the first nine months.

The Final Budget Outcome 2013-14 was released this week by Treasurer Joe Hockey and Finance Minister Mathias Cormann. Buried in the long-awaited document is confirmation that net government debt at the end of June, nine months after the Coalition took office, has risen to $202.46 billion.



That’s quite a blow-out.

The last monthly Finance Department report prepared under the previous Labor Government, for 31 August 2013, showed forecast end of year net debt at $178.10 billion.

The following monthly report, September 2013, prepared after the Coalition had taken charge, also showed projected year-end debt steady at $178.10 bn. So did the October and November reports.



In December, however, following several decisions by the incoming treasurer, including abolishing the debt ceiling, the debt projection jumped to $191.52 billion.

This number was reaffirmed in January, February, March and April 2014. In May, it was increased to $197.85 billion. Then, without notice, monthly reports ceased.

Clearly, the actual outcome under the Coalition is a cool $24.36 billion more debt than forecast had Labor stayed on. Up 13.7%.

Hockey has, of course, attempted to blame Labor:

‘The Final Budget Outcome for the 2013-14 financial year is a budget report card on the previous Government’s irresponsible fiscal and economic management.’

Hardly. Mr Hockey has had more than 42 weeks – and a clear mandate – to reverse anything ‘irresponsible’. Instead, wasteful spending has increased, including dubious travel for ministers and their entourages, costly royal visits and expensive politically-motivated royal commissions.



Table 5 of this week’s Treasury document shows that in just seven weeks between the May budget and June 30, expenditure on ‘legislative and executive affairs’ blew out by a staggering $68 million.

That was not Labor’s doing.

Other unjustifiable spending by the Abbott Government includes its punitive border protection regime and an $8.8 billion grant paid to the Reserve Bank that it didn’t ask for and doesn’t need. On the revenue side, equally damaging failures include abolishing the carbon and mining taxes without adequate replacement income. Those were not Labor decisions.

This week’s proof of the debt expansion follows confirmation after the May budget that Abbott and Hockey had more than doubled the projected budget deficits over Labor’s levels.

ABC Fact Check unit showed in June that government decisions increased the deficits for the four-year forward estimates period by more than $68 billion.



Clearly, there is no commitment whatsoever to

‘… balance the books, live within our means and return the budget to surplus as quickly as possible.’
Gone are the dire warnings before the last election of debt ‘spiralling out of control’.

continue

So even if people are stupid enough to vote back in a Labor Govt, it won't have a cashed up Treasury in which to pork barrel with for a change. 

Swagman wrote on Sep 29^th, 2014 at 8:57am:


They're both pretty adept at vote buying practices. I suspect you already know that.

What is more concerning is the recession the shambles are causing, deliberately or by incompetence. That is really going to blow out the deficit.

St George of the Garden wrote on Sep 29^th, 2014 at 9:40am:


The Senate has blown out the deficit by blocking the majority of the Budget's savings measures.

Effectively Aust is still running on Labor's overspending.

That's the line Hockey should be spruiking.

Its time wrote on Sep 29^th, 2014 at 10:00am:


Not nobody, those net-taxpayers with an ounce of perception.......

Its time wrote on Sep 29^th, 2014 at 10:22am:


It's pretty difficult for anyone to totally avoid paying tax which is why I specifically refer to 'net' tax.  Roughly 80% of people pay zero or negative 'net' tax.  It's no friggin wonder they don't give a rat's bum about Govt debt because it's the 'net' tax-payer that ends up meeting the commitment.

The Senate has no moral compass.  It's political or megalomaniacal.
 
What is wrong with the Senate is that it is unrepresentative.  Drop-kicks with a smidgeon of the vote has disproportionate voting power.

Stratos wrote on Sep 29^th, 2014 at 10:47am:


Tax paid less additional benefits received = net tax.

Is it collated as a Stat.  No.  That would upset the ochlocrats.