Australian Budget – just wait

Posted: May 11, 2018 in Uncategorized

A funny budget this one. Long are gone the Global Financial Crisis with “deficit repair” and other ominous term. The forecasts are particularly nice (which Budget is not rosy?), specially in the wage upswing.

But it is a stalling Budget. Tax cuts and every incentive for the population at large are coming only in a few years.

It is not a bad Budget, but it is a “resting on the laurels” kind of Budget. While the electricity bills, childcare bills and other day to day creep up every day.

The issue is that there are no laurels to be rested upon.

From the GFC Australia went backwards.

2013 Debt to GDP ranked 9th in the OECD countries. Now 13th.

2017 Budget deficit 26th out of 33th

2013 Jobs available 7th and now 17th

Practically we would need  USD$5.2 billion surplus to go back to 2013.

From 2013 Australia completely missed the global upswing, after having performed exceptionally good during the GFC.

So, while not a bad Budget, it just misses the point.

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