So, we’ve had the Budget.
The one time that we need a shift in government policy – and nothing happens.
Treasury believes that the size of our economy is fundamentally smaller, that there has been a permanent shock to our income. As a result, spending needs to fall or taxes need to rise – 11 years of operating deficits isn’t good enough. And I’m not sure that S&P will let us get away with it …
I don’t agree with David Farrar when he says:
There’s not much one can argue should be done differently.
As a commitment to cut spending or lift taxes from 2011 would have been the way to go. However, he does give a good summary of what was in the budget.