So you need another history lesson, again?http://theconversation.com/factcheck-has-australias-net-debt-doubled-under-the-current-government-1008192007,
...on the other hand the LNP typically leave govt with a balanced budget and less or no debt.
So how did they manage to double national debt in just six years given (according to you) they have superior economic skills?
last budget by LNP was around -$22B debt (that's cash in the bank and does not include the money paid into the future fund)
2013 (change of govt), last budget by ALP govt was around ~$157B in debt ($179B increase in 6 years) and rising at some of its highest rates under ALP
In addition the net debt as GDP ratio was around 12% at change of govt
So the ALP govt increased the net debt by an infinite percentage as they were handed a negative net debt and negative deficit.
I assume at this point you will agree with this data.2016,
the govt debt hits around $300B'ish, but the net debt of GDP ratio plateau's out at around 18% for next few years due to expansion of the economy and reducing deficit. 2019,
the govt debt is plateauing out at just over $350B, but the net debt of GDP ratio is still around 18% and dropping. ie the debt is more affordable due to combined efforts of zero deficit and expansion of the economy.
Now before we hear the GFC rhetoric again.
- Yes, Rudd spent Australia through the GFC to avoid a recession. Good work, no complaints from me although the delivery needed to slightly different approach. I don't agree with throwing money at people, build smeg! Could have built the Inland.
Q to the Punters, how much do you expect teh govt to blow trying to prop up the economy and when would you expect the govt to return to surplus during the following years which were a booming time, high wages growth and where the $ exceeded parity? I would have thought 3 years to achieve surplus in a booming economy is more than enough time to flat line the deficit.
- Now, roll the dice to 2013, even you Donny Boy will acknowledge that the Australian economy came off the boil around Q3 2013 due to the end of the mining boom. Q3 2013 saw the Dollar at it highest prior to it crashing over the following two years and with it rising unemployment. Canada and other similar commodity driven economies actually had a recession at this time, so Australia dodged a bullet a 2nd time.
So around the time the ALP dumped the dying economy onto the Libs at the 2013 election, the deficit was round $35B, nearly 8% of the Fed budget. The Libs rather than quickly pulling the reins in and sending the economy into a recession had to again go spending.
Also note there is such a thing as budget/economy inertia in that following a change in govt, it takes a few years for the incoming govt to deal with built in expenses and revenue. Remember the election in 2013 was in Q3, so that its nearly 9mths post election before the LNP first budget which itself doesn't start to take effect from mid 2014 and hence its mid 2015 before their first budget is completed its cycle. So allow two years to deal with the budget/economy inertia for the LNP's policies to start hitting the economy in full strength and over ride anything from previous govt. From there it was another 4 years to achieve break even while at the same time not inducing a recession and actually growing the economy at the same time. Yes I would have likened it sooner.
Like or not the strategy to boost immigration was to prevent a recession and increase the number of taxpayers to fund the debt and dilute the cost of servicing the debt.
Yes the current budget surplus is fragile as the first one will always be as its a small number with numerous other challenges and risks to the economy.