From the Economist Mr Abbott complains that his government inherited a “debt and deficit disaster” from its predecessor. Yet Australia’s net debt, at 12.5% of GDP, is quite modest compared with most other rich countries. Regardless of the budget’s impact on the economy, Mr Abbott faces a political battle in selling it to Australians. Mr Hockey reckons the budget means “smaller, less interfering government”. The claim sits oddly with two big-spending measures Mr Abbott promised to introduce before winning the election eight months ago. One involves generous parental leave payments for new mothers earning up to A$100,000 a year. The other would replace a carbon tax on polluters with government payments of A$2.5 billion to encourage them to lower carbon emissions. He seems determined to forge ahead with both.
Posted on: Tue, 13 May 2014 12:50:54 +0000
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