Alan Kohler: The Coalition’s (sort of) conversion to debt and deficits

The budget measures for 2022-23 announced on budget night total $24.7 billion, half of which is the extension of full expensing for small business ($10.9 billion) and the loss carry-back extension ($3.2 billion). The other big-ticket item in that year is aged care ($4.6 billion). So, 185 per cent of the estimated improvement in the bottom line for 2022-23 was budgeted to be spent in the budget. Exactly the same goes for 2023-24: The pre-budget improvement in the deficit would have been $15.8 billion; measures announced on Tuesday – $29.3 billion, or 185 per cent of the gain. In other words, the Coalition has had a conversion towards spending money and accepting deficits, but mainly in two and three years’ time. By the way, there’s an interesting increase in the mysterious item called “decisions taken but not yet announced”, which I’ve always taken to mean “secret war chest”. It’s gone from $6.6 billion over four years to $10.3 billion. There must be an election coming.

Source: Alan Kohler: The Coalition’s (sort of) conversion to debt and deficits

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