So just how much cutting to expenditure is there in the budget? To establish this I looked at Payments in nominal dollars in the MYEFO compared to the budget. Remember that Joe Hockey added a bit of spending to the MYEFO anyway to lay more blame on the previous government.
So, um, nothing. What is happening is that the rate of increase in overall expenditure has been reduced. Rather than cutting spending what Hockey has done is rearrange spending.
Same exercise for revenue.
So the announced increases to taxation – a broken promise – aren’t doing very much in the way of raising revenue.