Former Treasurer and Board Member of the forever under-performing Future Fund, Peter Costello seems to be at it again.
Costello is reported on the afr.com web site saying:
- Australia will end up in the same economic position as Europe if the government doesn't start to curb spending, says former Liberal treasurer Peter Costello. "Europe at the moment is suffering under a mountain of debt that it can't service," he told Macquarie Radio on Tuesday. Australia's longest-serving treasurer warned Labor to heed the lessons implicit in Europe's demise, saying the government could only spend money it doesn't have "for a while" before it will end up using all of its income to service its debt.
- "This is what I have been warning about here in Australia for some time," he said.
- "If the journey keeps continuing at the rate in the years ahead that it did in the last three or four years it won't be too long before we start experiencing European-type problems.
He seemingly hasn't looked at any Budget or MYEFO papers in recent years because if he did, he would find the following, as I have reported here (http://tiny.cc/b4tak) and other places on this blog before:
- Government spending to GDP averaged 24.2% of GDP during the 12 Budgets that Mr Costello delivered between 1996 and 2007.
- Government spending rose as a result of the stimulus measures during the GFC and peaked at 26.0% of GDP in 2009-10.
- It since fell to 24.7% of GDP in 2010-11.
- Government spending to GDP is projected to be 23.6% of GDP in 2012-13.
- This will be around 1.5% of GDP below the average government spending to GDP ratio of the last 30 years and obviously below the average spending to GDP ratio in the Budget’s the Mr Costello delivered.
And for the record, in only in 3 years out of 12 Budget delivered by Mr Costello was the government spending to GDP ratio lower than the Gillard Government is projecting for 2012-13.