With the way Gillard is spending, how CAN Abbott possibly commit to a return to surplus timetable?


OK. I get it. Opposition leader Tony Abbott, before the last election, did commit to return Gillard’s budget deficit to surplus within one term.

But that commitment simply isn’t possible now for two main reasons.

1. The budget deficit is much higher that the initial $6 billion Abbott committed to returning to surplus.

2. With gross national debt (and yes, this does affect the budget) skyrocketing at around $2 billion per week, budget debt rising fast too, and uncertainty as to exactly what week this government will fall, it would be foolish and impossible to try and dream up some sort of timetable now. Timetables require a costing/spending plan. You need to start out with a total, but nobody knows exactly what that total will be when this mess finally comes to an end.

Mr Abbott said the Coalition wasn’t in a position to make a similar pledge as it did at the last election, when it promised to post a $6 billion surplus by 2012-13.

“Now since then a lot’s happened and as you know for the current financial year the government originally predicted a $12 billion deficit, then it went out to $24 billion and now it’s gone out to $37 billion.

Imagine what that budget debt would be if sneaky Wayne Swan hadn’t taken the NBN out of budget calculations.

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    • Merilyn
    • February 8th, 2012

    Penny Wong was interviewed on the ABC/ALP station this morning just before 9 am and she insisted that we are in “very good shape and the envy of the world”. The other person from the Liberal Party hardly managed to get a word in as the person doing doing the interview kept asking over the top all the time “Is Tony Abbott going to get the budget back into surplus in his first term if he gets elected”, in the end the other person snapped well the Labor Party has not had a surplus since they were elected. [It was on 891 S.A. ABC].

    • mabba
    • February 8th, 2012

    And the real rub is the blow out from the NBN, which as you point out, is not even IN the budget!!

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