Sunday, 15 April 2012

Me in the AFR today: Fiscal prudence is right policy for now

There is an almost unlimited demand on government finances. Be it a dental scheme, disability insurance, aged care, a literary award or infrastructure, a case can be made for government funding and intervention. Many demands for government funds are driven by micro-economic imperatives aimed at lifting productivity; others go to common decency and fairness for a very rich country like Australia. Others are political largesse and these are the kind that need to be not only rejected, but abolished.
The harsh reality of governing is that there is a limited supply of funds. This point is all the more problematic when constituents shy away from having to pay tax, or indeed the government tax take is running near historical lows due to prior discretionary tax cuts and a cyclical downswing in revenue as the result of a sustained period of below trend economic growth.

For the full article, click here:

I hope Greens leader Christine Milne can understand how irresponsible and misguided her comments on the budget are.

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