Swan and the Ruddster versus the Global Financial Crisis
Hourann’s Federal Budget verdict: not perfect, but decent, and surprisingly well balanced.
Most of the criticism I’ve read is rubbish — what’s up with Joe Hockey and this “lost control” nonsense, or his constant dummy-spit about taking on some debt? There is a pretty strong global consensus that cutting spending is unwise (witness California, or indeed any American state), and while it’d be lovely and morally pure to remain debt-free, that’s nigh impossible in the current climate. We will at least still be one of the least-indebted OECD members, and unless the recession becomes long-lived and revenues drop sharply again, the proposed debt is quite manageable.
Rather than arguing about how much is spent, though, I think it’s quite fair to entertain criticism on where it’s spent. There is room for decent arguments that this budget does scant little for the environment, that the spending on education is good but not targeted correctly, or that the proposed infrastructure spending is neither big enough nor bold enough. But then again, see above; not going too far into deficit is a pretty important consideration, and on that front I think the general balance looks about right. (Imagine if the spending levels had been Keating-esque!)
Oh, and the budget includes $236 million for the Northbridge Link rail project in Perth (leaving the Sydney Morning Herald to whine on the front page). Again not perfect (it’s not enough to go past Lake Street!), but still, who says the Commonwealth never did anything for WA?