Should the Labor government ditch the promise of a surplus in 2016-17 (1 Viewer)

[Sathius005]

Should the Labor government ditch the promise of a surplus in 2016-17 given the revenue shortfall and the cuts needed to achieve it? Tony Abbott has ditched his promise to return the budget to surplus until 2026, which he predicts will be 1 per cent of GDP. Tony Abbott has acknowledged the fragility in the Australian and international economy as a result of the Global Economic Recession and the slow down in economic growth in China/ India. Peter Costello says that it will take 20 years to pay back net federal government debt.

 

[soloooooo]

Given Labor will be in opposition, the question is not relevant.

 

[wannaspoon]

Labor should ditch the promise of ever getting into surplus... deficit isn't all too bad but... its only when you have a deficit like Greece when the problems really begin...

 

[hayleyemma96]

Labor should ditch the promise of ever getting into surplus... deficit isn't all too bad but... its only when you have a deficit like Greece when the problems really begin...

The deficit in Greece was the result of public debt whereas Australia's debt is mostly private and therefore, manageable.
Ross Gittins gives a lovely insight into it in his articles as well as Tim Dixon in his textbook


Hayley

 

[funkshen]

The deficit in Greece was the result of public debt whereas Australia's debt is mostly private and therefore, manageable.
Ross Gittins gives a lovely insight into it in his articles as well as Tim Dixon in his textbook


Hayley

debt being private or public has nothing to do with whether it is manageable or not.

i hope you did okay in your HSC economics exam.