Greg Jericho writes a good article on the above.
We have been through this umpteen times. If your revenue is weak so the is the budget bottom line.
The last time the ALP were in government revenue was very weak. Indeed so weak it was back at 'Keating' levels as a % of GDP despite what Sinclair Davidson and the rest of the goebbels group attempted to say. Remember revenue was roaring.It just didn't get to very high levels. Despite this we should have had a surplus. The reasoning was extremely specious. and easily shown to be false. A derivation was commodity prices were strong so we should have a budget surplus. the innumerate JC used to say this. He could not read budget papers. If he could he would have seen company tax was weak. There was no link between commodity prices and tax revenues. This was mainly the result of tax losses .
Despite immediately promising to deliver a surplus the coalition did not. They wil only do it if revenues are strong.
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