Austerity rules – or does it?

Wayne Swan will today deliver the 2012/13 Federal Budget. He will guarantee that with a continued strict economic policy, the current deficit of $40bn will become a surplus of approx $1bn or so next financial year.

With money to be put aside in the budget for parent handouts, dental schemes and small business, Wayne Swan’s budget is far from the austerity measures voted against in Greece on Sunday. And with the new French Socialist President, Francois Hollande also declaring that austerity is a thing of the past, it seems that saving for a rainy day is no longer in fashion.

However, don’t be fooled by all the good news that has been swirling around pre-budget. The money to claw back the $40bn deficit has to come from somewhere. This is where the austerity kicks in – from your pocket. Extra taxes and less public spending are likely to be the underlying pain in Wayne Swan’s push for a balance sheet in the black.

Read the full story at TheAge.com.au.

Debbie loves living in Australia. It has been, and continues to be, good to her and her family. But she is dismayed at the inability of politicians to see just how great this country is and protect it.

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Budget summary