This is a follow up blog to the previous post on the unsustainability of the Tasmanian State Budget. Trying to see the wood for the trees in a set of budget papers is hard, even for those with some accounting knowledge.
There’s only one place to start. The beginning. And that is with the cash flow statement. The Tasmanian government is a service provider. Nobody should care too much if it doesn’t make a profit. The things that matter are:
· Is it paying its way?
· If not how is it financing the shortfall?
· Is it spending enough on infrastructure?
· Are financing costs strangling the budget?