Thursday, 22 August 2019

Surplus myth lives on

Who remembers the Budget slogan?

Every budget is sold with a particular message and this year’s State budget in May 2019 was no exception.

Maintaining the momentum…. investing for growth” was the chosen catch cry.

The massive infrastructure spend of $2.8 billion over four years was set to lay the foundations for the future.

With the year almost over, the infrastructure spend for the full year 2018/19 was expected to be $699 million, The preliminary outcomes report for the completed year released last week showed spending was only $582 million, $117 million less than expected a month earlier.

The pattern of recent governments is to consistently spend less on infrastructure than budgeted, on average roughly $100 million each year. In that sense the momentum has been maintained.