Beazley’s Rollback: All Talk, No Ticker
October 19, 2001Labor’s Black Hole: Econtech is Right and Labor Wrong
October 26, 2001
NO.086
LABOR BLOWS THE BUDGET
After two and a half weeks of the election campaign, the Labor Party has made promises for new spending of $3.8 billion.
After subtracting these from the Budget bottom line as stated in Pre-Election Economic and Fiscal Outlook, Labor would (on its own costings) have the following bottom line.
|
|
2001-02 |
2002-03 |
2003-04 |
2004-05 |
|
PEFO cash budget balance ($m) |
$502.00 |
$991.00 |
$1,776.00 |
$3,856.00 |
|
Labor’s costings ($m) |
$290.56 |
$503.56 |
$1278.56 |
$1706.96 |
|
Remaining cash surplus under Labor ($m) |
$211.44 |
$487.44 |
$497.44 |
$2,149.04 |
But then there are the Labor ‘loans’.
Labor’s ‘loans’ are out of money the Commonwealth does not have (and is contingent on the repayment of debt after corporatisation of the Snowy Mountains Hydro-electric Authority), for terms unspecified, at interest rates unknown and for no known security. Labor does not expect these loans to be repaid and most certainly has not told interest bodies like the Aged Care sector about when they are due and payable. Adding these ‘loans’ to Labor’s bottom line means Labor now has the Budget in deficit on its own costings.
|
Labor’s loans |
2001-02 |
2002-03 |
2003-04 |
2004-05 |
|
Emission reductions |
|
$30.00 |
|
|
|
Aged care beds |
|
$200.00 |
|
|
|
Moving young people from aged care |
|
$50.00 |
|
|
|
Regional infrastructure kickstart |
|
$350.00 |
|
|
|
Tourism crisis relief |
|
$50.00 |
|
|
|
Sub-total |
|
$680.00 |
|
|
|
Remaining cash after ‘loans’ ($m) |
$211.44 |
$-192.56 |
$497.44 |
$2149.04 |
Canberra
24 October 2001