The Wall Street Journal Asia reminds its readers of the facts, and not the empty dodgy promises.
Canberra said GDP grew 2% this year and projects it will grow around 3.25% in the 2010-11 fiscal year and 4% the year after that. Had that not happened, the 54.8 billion Australian dollar ($49 billion) deficit in the 2009-10 fiscal year, or 4.2% of GDP, would have been higher because of the Rudd government’s many and varied public-spending initiatives.
Add this all together and voila!, you get a magic elixir of projected fiscal balance in an election year. “Not one single pre-election budget of the former [Liberal Party] government delivered net savings over the forward estimates,” Mr. Swan said Tuesday. He expects next year’s deficit to fall to A$39.6 billion, or 2.8% of GDP, and projects a small surplus by the 2012-13 fiscal year.