Remember the amazing smoke and mirrors wafer thin budget surplus we were promised this year? It was never going to happen and this looks more realistic.
Standard and Poor’s confirms the Government is spending money it no longer has:
One of the world’s major ratings agencies, Standard & Poor’s, believes Australia will record a budget deficit of $20-25 billion this year.
The agency has slashed its earlier estimate of a $1 billion surplus.
S&P’s senior director of sovereign ratings Tan Kim Eng says the cut is mainly due to global economic problems.
“Firstly the export sector is not doing as well as initially expected, commodities exports have not been as strong, on the other hand expenditures are rising,” he said.
A bit charitable to say the surplus was lost due to global economic problems.