The only issue i have is that they said they were going to...

The only issue i have is that they said they were going to deliver a surplus in the first instance. It showed a complete lack of foresight to a very probable outcome, ie a deterioration in the foreign accounts. Did they just think the coal and iron ore prices would stay @ historical highs forever??

It also shows them to be poor political operators. They didn't manage expectations. Had they said we will aim for a small deficit the Libs would not have the stick to beat them on the head with.

Either way i'm in favour of them expanding the deficit if economic conditions deterirate further. Rate cuts aren't doing much.