Labor won't get a surplus. The only way they want to deliver one is by raising taxes. Mining and Carbon Tax come to mind. The coalitions "black hole" is taking from their projected surplus. This is a contentious figure, and without knowing how Treasury came to their figures, it's hard to make judgment.
On the NBN, if you think this is going to go according to plan, then your living in a fantasy world. It's worse if it's spread over many years. This is going to be Myki and desalination plant Mk.II.(If you're from Victoria, you'll know what I mean)
Finally, you can use italics here. ;-)""
Hi Stakes (as in high roller?),
I've said this time and again. When a government goes into debt during a downturn, the vast majority of the deficit is attributable to a reduction in tax coming in. Government spending is a distant second. See previous posts for why. The coalition would have taken a bit longer to return to surplus due to their costing cock-ups, but at the end of the day, people all too often are barking up the wrong tree. Both sides of politics play this game. At the moment it's the coalition in opposition, so they quote the gross debt. The net debt is all that counts. Gross = total debt. Net = debt less cash & assets. If you were working out your own situation, which would you be concerned about? Don't get me wrong, Labor play the same games in opposition. It's called politics.
NBN - like all major projects, the end cost tends to blow out, so you're probably right. Contrary to the desalination plant, this is crucial infrastructure, moreso given our sparcely populated country. When they proposed in the nineteenth century to lay down an electricity grid, many questioned why it was necessary just to provide lighting. How many envisaged (accurately) in the mid nineties where the internet would take us? Give the crystal ball a roost and let's get on with what needs to be done. Abbotts plan is a 6b walkie talkie that will immediately need replacing. 6b down the drain. Maybe it can be recycled in the desal plant.
