The 2014 Budget - Is it enough to Win next years election ?, page-45

And here’s a the part you’re missing


Veteran Budget watcher and economist Chris Richardson said the Budget failed to pass the test of not poking “the inflationary bear”.“The government said it would be careful not to frontload its new costs. But that’s exactly what it did – and its new dollars are both big and fast,” he said.“In the coming year they’re eight times the size of what they are by 2027-28.”Mr Richardson said the Budget narrowed the RBA’s already-narrow path to achieve a soft economic landing to avoid a recession.“We’re in a hole and we’re still digging,” he said.“Our decisions are making it harder for the nation to make ends meet over the longer term.”The broad nature of the electricity price relief — which will not be means tested — has caused concern.“Cost-of-living relief, primarily delivered through the Stage 3 tax cuts and electricity rebates, is being delivered broadly, rather than targeted at those doing it toughest,” Committee for Economic Development Australia chief economist Cassandra Winzar said.“Electricity rebates may alleviate headline inflation but will drive spending elsewhere. This risks working against monetary policy.”