Well, it’s no surprise that the government is a little low on money. Most media reports keep propagating the Rudd spin that this is all caused by the global economic crisis and “decreased revenues” – but they seem to ignore the $100b+ additional spending. And spending is yet to increase further, with heavy borrowing and taxing to pay for it all. The latest round:
THE nation’s big earners, on $150,000 a year or more, will be hit to pay for pension reform.
Yes, we’re back to class warfare… Sure, we’re increasing taxes – but only on rich people, and it’s to pay for pensioners – so that’s ok. Hopefully, we won’t go as far as the UK – who are increasing their top rate from 40% to 50% – but we have in common with the UK the absolute refusal of government to cut spending:
“Either you completely slash and burn everything government does and throw tens of thousands of extra people on to the unemployment queues and cut funding for hospitals and schools, or you engage in temporary borrowing,” he [Rudd] said.
Of course, he doesn’t necessarily need to cut funding to hospitals and schools (which are rightfully state responsibilities anyway), as there are many other areas with lots of fat. Indeed, throwing tens of thousands of public servants on to the unemployment queues would be a net gain – though since most of these vote Labor, I doubt that will ever happen.
We’ll wait and see. I’d like to think that they’re just trying to soften us up for a budget that won’t be all that bad, but I’m sure that’s just wishful thinking.