"Hi they started with a surplus about 30 billion plus the future fund . Thats all gone in handouts and now want the OK to borrow up to 200 Billion Dollars and you think that is OK What world are you living in"
The future fund is still there, although it's lost some value as have most other similar investments.
The permission to borrow $200b over the next four years is needed because forecast Government revenues have been slashed by the financial crisis. As an example of this you just have to look at Leighton's figures released today. Tax liabilities down by 47% for the half year due to writing down the value of some assets. 2007 half year tax was $70,989,000 2008 half year tax is $37,579,000 If we don't borrow the shortfall what else would we do. Sell something (as we did with Telstra) Increase the tax rate? Not at the moment surely. Cut wages and slash Government expenditure. No infrastructure spending. Get rid of the pension maybe? That would send us into spiralling unemployment and misery.
