Today’s Federal budget was surprising. Do you recall the “doom and gloom” budget of the Abbott-Hockey era? (Referring to the effects of inheriting approximately $253 billion in debt from the previous Labor government?)
I heard Dr Jim Chalmers today reference “$1 trillion in debt” inherited from the previous Coalition government. I believe that is gross debt. Who is the debt owed to?
Pleasing points in today’s Federal Budget update included the “half a million” positions for free study in TAFE across Australia in areas of skills shortage, promoting accessible cleaner energy, supporting the childcare sector, “putting nurses back into nursing homes” to support the elderly (taking on recommendations from the Royal Commission), over $6 billion to support hospitals and Medicare and simultaneously factoring in the uncertainty of the times ahead.
A news article in 2015 mentioned that the surplus forecasted for the 2016-2017 budget “will now happen in 2019-2020”. In 2019, then-Treasurer – Josh Frydenberg – announced he expected the budget to reach a surplus for the following financial year.
Of course that all changed with the onset of the global pandemic and the necessary payment support structures that were put in place, and have helped many Australians get through the financial challenges of the past two years.
However I believe the financial challenges are still quite significant now. I reference my last article’s point about the time coming where we will need to help each other, rather than simply rely on payments from government agencies. With inflation on the rise and national debt at record high, I reiterate this. Do good, if you’re in a position to.
The response from the Federal Government to this uncertain economic climate, where a budget is put forth with no surplus in sight, has been optimistic. Rather than cull expenditure, there is an expansion of industries. Dr Chalmers stated today “A better future for Australia…is made in Australia.” With this statement he has committed to expanding manufacturing and industries within Australia. This means more jobs for more Australians – over a sustained period into the future.
While the budget was surprisingly optimistic, it did touch on “restraint”. This is significant. A balanced approach moving forward, somewhere between a cash-splash and a doom-and-gloom is the way forward. While simultaneously addressing the debt issue of our nation, promoting skilled training, manufacturing and the resultant job creation means positive outcomes, for us, are possible.
The past few years have given us all a sense of uncertainty and scepticism about certainty, which is ok.
We have adapted and learnt to embrace whatever comes our way.