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Budget deficit soars to 48.5 billion; Let's see the Pascoemeter defend this one
Topic Started: 25 Sep 2014, 02:44 PM (1,829 Views)
Drgonzo
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Interesting to see how Pascoe responds to this who has been overly critical of Hockey and claiming there is no budget problem in Australia.


Budget deficit soars to $48.5bn


The Australian|
September 25, 201412:36PM


Joe Hockey has released the final budget outcome for 2013 — 14Source: News Corp Australia


LABOR’S final budget produced a $48.5 billion deficit last financial year, $30 billion more than the deficit forecast by Treasury the government has revealed.

When Labor’s last budget was handed down in May last year, then treasurer Wayne Swan projected a deficit of $18 billion, citing a “savage hit to tax receipts” and a “deep commitment” to support employment and economic growth. The 2011-12 budget projected a $5.4bn surplus.

The figure includes an $8.8bn of additional funding to the Reserve Bank, $571 million to maintain offshore immigration detention, additional funding for public service agencies to manage unfunded redundancies, and the Coalition’s decision to dump 96 proposed tax and superannuation changes.

Treasurer Joe Hockey said the final budget outcome “draws a line under the sand” of Labor’s tenure, citing the blowout as further evidence for the budget cuts and tax increases announced in May.

“Labor left Australia with no plan to fund the future and address their unsustainable spending trajectory over the medium term,” he said in a joint statement with Finance Minister Mathias Cormann.

“If no policy action was taken to repair the budget position the Government inherited, gross debt would have spiralled to $667 billion over the medium term and continued to grow.

“We are making spending sustainable, delivering record infrastructure investment, creating new jobs and bringing the budget back to surplus over the medium term.”


Budget fix promised as deficits soar


Mr Hockey, when asked if Labor manipulated Treasury to produce the erroneous forecasts, said ministers must take responsibility for their projections and “that’s the bottom line”.

“Whenever we sit down with our officers we pepper them with questions … to ensure that we are satisfied that forecasts are as robust as possible. Now maybe the previous government didn’t do that? I don’t know, but they seemed to get every number wrong,” he said.

Comment is being sought from opposition treasury spokesman Chris Bowen.
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peter fraser
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The Kouk had this to say on twitter

Quote:
 
Stephen Koukoulas ‏@TheKouk · 46m
In 2013-14, govt spending was a massive 25.6% of GDP; 2nd highest in last 2 decades, exceeded only by stimulus / GFC year 2009-10


So much for "balancing the budget"

I don't mind Tony spending, but what is he buying, that's my question.


Any expressed market opinion is my own and is not to be taken as financial advice
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Drgonzo
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peter fraser
25 Sep 2014, 02:54 PM
The Kouk had this to say on twitter




So much for "balancing the budget"

I don't mind Tony spending, but what is he buying, that's my question.

Roads, roads to everywhere and roads to nowhere, which is great news for me and basically the only reason I voted liberal.
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peter fraser
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Drgonzo
25 Sep 2014, 02:56 PM
Roads, roads to everywhere and roads to nowhere, which is great news for me and basically the only reason I voted liberal.
Ah - you have the Komatsu dealership for Australia.

Smart guy.
Any expressed market opinion is my own and is not to be taken as financial advice
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vdmruss
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It's time to treat our politicians like this:

https://www.youtube.com/watch?v=wOnKtX_QjHE

The only way they would learn.

Quote:
 
“Labor left Australia with no plan to fund the future and address their unsustainable spending trajectory over the medium term,” he said in a joint statement with Finance Minister Mathias Cormann.


Pretty sick of the finger-pointing. :(
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours.
Those who can, do. Those who can't, teach.
"It's an itchy blanket, it's designed to remind you how lucky you are"
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Ex BP Golly
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"Draw a line under the sand".

Feeling comfortable and relaxed?

I do prefer my politicians to at least get the clichés correct.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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b_b
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The final budget position really has very little to do with politicians. It's outcome is largely determined by the non-government sector.

If the non-government sector desires to net save, the outcome has to be a fiscal deficit.
Edited by b_b, 26 Sep 2014, 04:39 PM.
(S – I) + (T - G) + (M - X) = 0
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goldbug
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Ex BP Golly
26 Sep 2014, 04:04 PM
"Draw a line under the sand".

Feeling comfortable and relaxed?
The deficit is meaningless at these levels BP Golly, the debt is the real issue. We are reportedly paying a billion a month in interest on it.
Quote:
 

There is no doubt that if we use nominal terms government net debt is at a record level. The recent budget papers have it at $226.4bn, 

http://www.theguardian.com/business/grogonomics/2014/jun/09/government-debt-it-all-depends-on-how-you-look-at-it

But that's meaningless compared to the 1.4 trillion in household debt, half of which has been racked up by property speculators on IO loans :lol
" It's good debt good debt" at least until you have to pay it back during the worst economic downturn since the great depression.

THE DEBT CLOCK
http://www.australiandebtclock.com.au/
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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b_b
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goldbug
26 Sep 2014, 04:54 PM
The deficit is meaningless at these levels BP Golly, the debt is the real issue. We are reportedly paying a billion a month in interest on it.


http://www.theguardian.com/business/grogonomics/2014/jun/09/government-debt-it-all-depends-on-how-you-look-at-it

But that's meaningless compared to the 1.4 trillion in household debt, half of which has been racked up by property speculators on IO loans :lol
" It's good debt good debt" at least until you have to pay it back during the worst economic downturn since the great depression.

THE DEBT CLOCK
http://www.australiandebtclock.com.au/
As a "goldbug" I would have thought you knew debt is (fiat) money.
Edited by b_b, 26 Sep 2014, 06:41 PM.
(S – I) + (T - G) + (M - X) = 0
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peter fraser
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b_b
26 Sep 2014, 06:41 PM
As a "goldbug" I would have thought you knew debt is (fiat) money.
I assume that the cash in the system is included in government debt?
Any expressed market opinion is my own and is not to be taken as financial advice
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