Australian politics : un budget electoralist

A  budget to grab votes
by GDL

The most obvious reactions from all corners after the presentation of this years' budget was, what a turn around !!! Indeed that reaction is legitimate in the way it contrasts with the last one presented by the fat man with the cigar as in now commonly known the Treasurer, Joe Hockey.  Last year it was all about budget emergency, the deficit, that we cannot continue to live beyond our means, cut spending, it is all  Labors' bad legacy, GP co-payment as medicare is under pressure, the welfare budget too was a big problem, so indexing the pensions, six months waiting period for new starters, deregulating university fees making student paying more for their degrees, increasing the HECs debt interest rate, while introducing generous paid parental leave for the rich women of the North shore and Tourack, putting pressure on families, the sick and targeting mostly those at the bottom of the social ladder as well as low and middle income families. The budget then was the true face of the Liberals who favours more the rich than the poor, which hates the welfare beneficiaries and university students as they are seen to be leftists or labour's heartland voters. They needed to be punished by bearing the biggest burden of economic reform and budget repairs. No  doubt that last year's unfair budget was criticised by most journalists, analysts and commentators in the media so much so that the Libs were in turmoil and Tony Abbott came close of loosing the prime ministership. It was also a nightmare for the Treasurer who faced the wraft of the voters and virtually went into hiding. His position was, according to many, becoming untenable. He came close from being replaced by the rising star and super minister Scott Morrison.
This year's budget is more of a political document to attract voters and make them forget the bitter pill that was administered to the them last year. It was not a dull budget as we thought, but a budget which repaired the relationship between the voters and the government. It was a giveaway budget to attract voters by reducing tax for small business with other goodies, and generous to low and middle income families through child care benefits. The indexation of pensions was dropped instead pensioners with low assets will receive more and cut to high asset-owned pensioners and part pensioners. No change to superannuation meaning those with millions in their portfolio will continue to benefit from generous tax concessions. The GP co-payment dropped as well as the parental leave signature policy. It could also be termed a no tax budget.
The three measures above were the highlights and strong points of the Government's budget on which most  voters focussed. The reaction did  not take long and this week's poll put the government in a winning position and surprise, surprise, Tony Abbott is now the preferred Prime Minister!!!!. What a change of fortune for Donald Duck !!!! The budget sparked  a smell of early elections through its goodies and now with the polls showing the government in front will there be an early election, which should also trigger a double dissolution if the senate continues to block supply? The answer is in the wind of change although the PM is diplomatically avoiding this possibility. But as everybody knows politicians cannot be trusted on their words.
The Labor opposition was taken aback with such a budget coming from the Liberals, and they could not find flaws and grounds to criticise apart  form the generosity to high income families who will still get 50%  of child care benefits and defending the double dippers on maternity leave payment. The critical path to surplus was also contested as being too optimistic on growth.Bill Shorten's  reply speech was also very political with a touch of enhanced philosophy and looking for the future of Australia through more emphasis  on technology and science. It was also a brillant speech but which did not show where will the money be coming from to pay for these policies. He stumbbled so many times on this issue on ABC and at other interviews.

So with the turnaround it seems that we are now on the path of economic recovery far from a budget emergency. The deficit is under control; we are well into the path of surplus, money will just flows in, there is no revenue problem, government can continue to spend (on the increase as a percentage of GDP). There is no more need for reforms of taxation or superannuation, medicare is no longer under pressure nor is the welfare budget. Let's ignore the inter-generation report.  According to the fat man we can now confidently go out and borrow and spend to stimulate the economy. ( which is sluggish according to the reserve bank; cash rate is at only 2% no need to be an economist to understand that our economy is in dire strait). The job market will be plentiful, everybody will soon have a job  through the small business package. Vire mam, riez mam.
Well well all is now beautiful under the Australian sun, we are all happy and our future and those of future generations are secure. Better days are ahead of us according to Joe. So let's then relax , sleep tight and wait for the elections.
GDL

My next Blog will be on the social and economic reforms that Australia really needs.