peter costello on the state of the economy, page-22

"Wrong. Surplus is not a sign of excessive tax and asset sales. "

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No Carrera. You're wrong.

Costello never decreased govt expenditure in nominal terms, he did however slow expenditure a tad in the early years (ie increased in nominal terms, fell in real terms), which was completely offset by the drunken middle class welfare spend binge in the latter half of his reign.

His surpluses were a function of massive taxation receipts and $60 billion odd in asset sales (Telstra and Airports). The States too had nice surpluses at the time, all because of a flood of GST revenue, not because of conservative spending.

He, and the states, spent as if this flood of tax receipts would never end. And talk about impeccable timing, it ended with his departure and the appearance of the GFC.

Left his 'reputation' wholly intact.