From Peter Martin today:
The Senate and the deteriorating iron ore price have knocked a $51 billion hole in Treasurer Joe Hockey’s first budget, an independent analysis has found. It says part of the problem is that the budget is seen as “unfair”.
…Whereas the Treasury expected a budget deficit of $29.8 billion this financial year, sliding to just $2.8 billion in 2017-18, Macroeconomics expects a deficit of $47.8 billion slipping to a still high $24 billion in 2017-18.
…”The real problem with the first Hockey Budget is that it is seen as unfair. It imposes too much of the adjustment burden on the disadvantaged rather than wealthy Australians who would benefit most from a resurgent economy driven by structural budget repairs.”
…”Any savings shortfall can be funded by winding back superannuation concessions.”
Hear, hear. And if he doesn’t find the savings then Standard Poors awaits with its downgrade if we breach 30% net debt:
Prepare for a nasty MYEFO and new blow to consumer confidence just in time for Chrissy.
