Monday, 18 December 2017


We have another MYEFO again.

For comment see Saul Eslake and  Ross Guest. Lets add Ross Gittins

What is extraordinary that in the whole time the government has been in office they have not decreased the structural budget deficit at all.  All that has occurred is that the Cyclical improvement has hidden the problems of the structural deficit.

Indeed if the talk of tax cuts prove correct this structural deficit will increase if there is no commensurate cut in spending!!

One little thing. On an accrual accounting basis which is the only way to look at the budget the deficit is only about 0.5% of GDP in other words it is in balance!