Treasurer’s Revised Estimates Report for 2018/19 released on Wednesday 30th
January reveals we are on the brink of a disaster.
Treasurer still says otherwise. “(W)e will remain in surplus this year and
across the forward estimates”, according to his media release.
can the government be running surpluses if its net debt position worsens by
$1.2 billion over the forward estimates? That’s because they’re not real
surpluses. The Treasurer is not entitled to describe his bottom line as a
surplus, because that term implies a cash surplus. Most people think the
government is running cash surpluses. The reality is the exact opposite. For example,
in the current year, the government will spend $522 million more than it will
is not a temporary blip caused by the Hobart hospital. Even after Revised
Estimate changes, spending on the rebuild will only be $210 million this year (and
$80 million in 2019/20 to complete the job).
the next year or two the government will finance its excess spending by
internal borrowings. In three years’ time however the cupboard will be
completely bare. Even the $270 million that the government has supposedly set
aside to cover insurance (the government is a self-insurer) will be gone.