It's Our Money

The Federal Government is projecting a budget surplus of around $9.7 billion for 2007/8, and some recent announcements show that they intend to protect it at all costs. While the next budget will not officially be handed down until May, both Howard and Costello are merrily slashing spending initiatives proposed by their own Liberal ministers.

Education and particularly science have been the most publicised casualties, but not surprisingly, health, welfare, indigenous policies, agriculture and industry are also set to suffer. It’s a familiar story, but one that’s getting old fast. Costello has been a particularly tight treasurer over his tenure, despite the huge increases in revenue supplied by the GST. He has been expert at collecting this money from the Labor run states and returning as little as possible to them (and us). Aside from partisanship though, the stinginess of the current government is motivated primarily by conserving their ‘economic credibility’ as a means of getting re-elected.

Last time we went to the polls, a surprisingly high percentage of Australian’s were taken in by Howard’s scare tactics surrounding interest rates – and his constant reminder of the 18% experienced under Keating (I’m presuming that was why, because there were few other good reasons). Rates were low then, but have been raised on (something like) 6 consecutive occasions in the recent past, putting an increasingly large hole in their argument. Forget for a minute that governments have no direct role in setting interest rates, and maybe you can understand the Libs slashing the budget and sitting on a fat surplus, stemming inflation by not spending a cent.

What’s worse is that come October when the campaign is in full swing, there is sure to be a whole bunch of last minute spending promises (as distinct from actual spending) to bolster support and distract from their industrial relations quagmire. There is also shorts odds of the trademark Howard $7.50 (or other piss weak amount) tax rebate, to give us all that fuzzy feeling as we head into vote. It’s pathetic and hopefully the electorate will see through it this time.

What would I do differently? Given the opportunity, this Administration would become the first in generations to spend actual money on the services that matter to Australians. Imagine free (or at least functional) health care, free tertiary education, toll-free roads, quality public schools, paid maternity leave… (ask the Swedes if it’s a pipedream). While these are currently the responsibility of the cash strapped states, the commonwealth are the ones with the purse strings – and its time they were opened. Give the surplus back to the people, and the irony is, you’ll be eminently more electable.