Australians Facing More Financial Pressures Along With the High Cost of Living
According to the Federal Opposition the different figures in budget outcomes and forecasts only prove that the Treasury Forecast cannot be used as a sound basis for financial management. The final budget results for 2009/10 released by the government last month has shown a minor improvement in the deficit in the budget amounting to $54.8 billion as compared to the $57.1 billion forecast for the budget in May.
When the results were released, Treasurer Wayne Swan along with Finance Minister Penny Wong were quick to say that it looks like the Budget is staying on track in getting back to surplus levels in 2012/13. However, Opposition Treasury Joe Hockey has some contradictory statements to offer. He strongly questioned the basis used by the two officials that they seem to be so confident and proud to make public announcements on the biggest Budget deficit in dollar terms ever recorded in modern Australian history. The statement only shows that the likelihood of the Treasurer to deliver a surplus Budget seems an impossibility.
Moreover, there are speculations and talks expressing concern on the net debt last June which amounted to $42.3 billion. The figure is almost half a billion dollars, which is higher than the forecast shown in the budget for May. The Opposition is making strong statements saying that the present Government seemed to be hooked on everything big like big spending, big deficits and big debts. In fact, their camp is saying that the revised deficit figure was primarily the result of a reduced spending on demand-related programs. The move was not at all a prudent approach to economic management.
The result of the Budget outcomes will most likely bring a higher interest rate meaning that taxpayers will be shouldering the huge debt incurred by the Government. This is an additional burden on top of the mortgages, credit card bills and small business loans that were taken out in the past. The heavy financial burden experienced by many Australians as well as struggling with the soaring cost of living can be justifiably blamed on the Gillard Government.