"What have the state governments done with all the GST largesses?"
Simple. Most goes to the bloated public services and bureaucrats. The budget woes can be solved with a flick of a pen by sacking a reasonable proportion of the public service (excluding front line essential services, such as police, teachers, nurses, etc.). Sure it will spike the unemployment rate but something has to give. The only other choice is to raise taxes but anyone with half a brain knows where that will lead us. A lot of the money saved by the massive cuts can be spent on major infrastructure projects. A lot of the sacked public servants can then do a lot of the work so the unemployment rate comes crashing back down after the spike.
