I wonder whether Andrew Leigh still stands by his claim made in mid-January that a budget surplus is still possible (AHAHAHAHA).
Labor backbencher Andrew Leigh, a former economist, says lower commodity prices and an unusually high Australian dollar has knocked $20 billion off the government’s projected revenues in the past year.
But achieving a surplus was “certainly possible”.
“The treasurer last year didn’t rule out a surplus, just said that one was looking unlikely given what’s happened to revenues,” he told Sky News on Monday.
Dr Leigh said if the Gillard government enjoyed the same tax-to-GDP ratio as the Howard government it would easily be achieving a surplus this year.
I wonder whether he will be repeating this claim in the coming weeks as the government reverses its health cuts, introduces an unfunded Jobs for Australia package, desparately splashing money around, etc, etc.
On Leigh’s last point, he is surely being a bit disingenuous. After all, this government has not altered tax RATES and has added new taxes. The erosion in the tax base is the key. Maybe he is a former economist after all.