The budget

A budget a few days before an election is called.

Why wouldn't the punters be cynical.?
Tax cuts ( albeit only paid at the end of the fiscal year) that CBA research says is roughly equal to a 50 bp rate cut. Yep that should be treated very cynically.

Main Points:

• The budget is stimulatory. ( Get that sinkers). Offer tax cuts without spending cuts ( as Howard and Costello did) and then you have a structural deterioration in the budget
• A lot of the Infrastructure spending is off budget.
• CBA research says 78% of the 'improvement' in the budget bottom line comes from revenue.
• The only reason ( well not the only reason but you get what I mean) for spending making a contribution is lack of spending on the NDIS
• Spending as a % of GDP is still too close to GFC levels. This government cannot even match Wayne Swan!
• The budget is not into the black, It is projected to be NEXT financial year. What if a trade war erupts or China goes backwards?? Economists s usually say a budget is balanced if it is between + or  - 1 % of GDP. Please note none of the projected surpluses get past 1% of GDP

Enough of me

Try:

• Peter Martin
• Warren Hogan
• Richard Holden 
• Greg Jericho

Whoopsy.
One final point. If the economy is strong then why is the cash rate a 1.5% with diverse respected analysts such as Ricardian Ambivalence and The Kouk suggesting the RBA should be cutting further in May!