Past behaviour is a good indicator of future behaviour.
If that’s the case, then lots of people are getting their knickers in a very great bunch over nothing when it comes to the budget.
The Conservatives set their course with Wade Locke’s prosperity plan. Here are the key elements, as SRBP laid out in 2013
- Government will budget for annual deficits of about $500 million (accrual)/$1.0 billion (cash), if necessary.
- The money to cover that deficit will come from borrowing. That is, government will borrow from lenders, as Tom Marshall said in 2012, or government will take money out of temporary cash reserves, with no apparent intent to re-pay that own-source borrowing.
- Government will make up any shortfalls beyond that deficit level by cutting spending in one area and shifting the spending to other areas.