[foxdemon]

The cash statement shows that total revenue, excluding GST, increased at 3.6 per cent compound annual growth rate (CAGR) while cash costs increased at 7 per cent a year. Payments for employees grew 6.2 per cent per annum, grants and subsidies, 6.5 per cent, payments for goods and services, 6.7 per cent, personal benefit payments, 6.4 per cent, interest 26 per cent.

Each line item of costs increased more than revenue. For each of the last five years, cash flow was negative.

Don Argus reaches two main conclusions:

Expenditure is growing at an unsustainably strong pace".
"I am firmly of the view that we need to foster transparency and accountability in Australia's public finances. I believe we need tighter standards governing how budget material is constructed and published, akin to the accounting standards that govern company financial statements."

The first is a repeat of what Tony Abbott is saying, and flags Abbott's big challenge, if elected - halving the growth rate of costs. It's something Don Argus has seen many times in the corporate world; it's happening right now at his old company, BHP, for example.

link


It seems Labor has a real talent for spending.

[Swagman]

$191.7 Billion dollars in 5 accumulated budget deficits is Wayne Swan's legacy.

This is in reality $191.7 Billion in tax increases. Also equivalent to about 4 times the annual GST revenue for 2012.

When you look at this cryptically and average it out over 5 budgets, Labor have figuratively Almost doubled the rate of GST.

Labor apologists that say the Howard Govt was the highest taxing Govt need to factor in the deficits accumulated by Labor into the equation. It's easy to pork barrel but much harder to remain popular and balance the books.

[AVT]

As Wyatt Roy said: “Treasurer, I’m about to turn 21. No Labor government in this place has ever delivered a budget surplus in my lifetime. Why should anyone believe you now?’’

Pretty much sums up Labor.

[Ahovking]

It seems Labor has a real talent for spending.

Ofcause they have a real talent for spending, they are after all democratic socialists.

[Yobbo]

Howard was 'high taxing' when the economy was in full swing leading to surpluses, and he indeed did pork barrel with middle class welfare; Labor so far have spent handsomely with the economy technically in recession for mere weeks in 2009. Qld Labor reached around $90 billion in debt at the same time as post 2009 high commodity prices led to increased state royalty collections. If only Labor could manage its spending habits with commensurate tax increases.

Also, I think record low reserve bank rates trying to fuel spending indicate we do have harder times ahead.

[colliric]

Ofcause they have a real talent for spending, they are after all democratic socialists.

They are fabian socialists, not democratic socialists.