Welcome to website dedicated to politics, economy and people.

                                                       If you have any comments or suggestions, don’t hesitate write to me.

                                                       I would like to know your view.            Email - [email protected]

   HOME PAGE         SHORT  NEWS                                 

BUDGET

2002-05-20

Mr Costello has brought another budget. Nothing unpredictable has

happened. What you see is what you get. The Treasurer made a

beautiful speech but if you look closely there is nothing impressive

and innovative in it.

Firstly, this is the first budget after election and people can’t

expect any good things there. Next election is far, far away.

Secondly, taxes stay untouched for not disrupting business people

after introducing GST.

Thirdly, cost cutting in social areas it’s nothing new, which was

done through all coalition’s budgets before.

At last, it’s pay back time, for what have you got from the

Government as a compensation for GST?

Let’s look what precisely some proposals Howard’s Government

prepared and exactly who is getting the best benefit from that budget?

The biggest winner in this budget is of course Australian Defence

Force, Federal Police and Special Forces, because of our

commitment to the international “fight against terrorism”.

The total cost of the Australian Defence Force deployment over

2001-03 will be around 2.1 billion and extra additional funding

of 195 million for 2002-03, and that can be upgrading if needed.

In that case it wasn’t any surprise for anybody for such big spending

because of the very high impact of defence and domestic security expenditure.

That’s why 1.3 billion will be spent on Federal Police and Special

Forces for upgrading domestic security over 5 years.

Additional funding of 1 billion will be placed over 5 years for

border protection. That will help put down the number of illegal

immigrants getting to Australia, but on other hand if you were

expecting that less migrants would come to Australia than you’ll be

very disappointed. Next year Australia will take extra 10,000 migrants

than this year.

It’s some good news for mothers and families who will be looking

for having a child. 1.2 billion will be spending over 4 years as

“Baby Bonus”. If you leave workforce for having a baby you will

be eligible to claim $2,500. When you come back to work you can

get $500 if you earn less than $25,000 per year. I’m not sure what

the Government wants to achieve that way. Because I don’t see any

big finance improvement in a family budget to stay for so long at

home looking after kids, particularly that scheme is designed more

for low-income earners. The Government acknowledged that we need

some new policy about ageing population, because we want to stop

declining our nation. This step is done in a good direction, but simply

not sufficient assistant of money is in place.

In a health department the Government will provide an extra 73

million for rural and regional health system for increasing number

of doctors and radiation oncology facilities. That of course is not

adequate, but that’s not the first time that Howard’s Government

giving more to defence section than health.

Treasurer is excellent in looking for extra money, especially if it’s

relating to the most vulnerable people of our society – pensioners

and disabled citizens. Cost cutting in a social area is the easiest thing to do.

The Government want to safe more than 1.1 billion on PBS medicines

over 4 years by rising prescriptions to $4.60 (now $3.60)

and general script payments to $28.60 (now $22.40).

Another 756 million the Government wants to save on crackdown

inappropriately prescribed PBS medicines. From the economical

point of view that action is an understandable step. But from social

outlook that is very unfair, because that makes a very big affect on

the most helpless, defenceless, sick people with low capacity of money. 

They are not so lucky like the Australian Defence members aged 70

and over because they got 93 million for comprehensive free health

care over 4 years. War widows will get 85 million over 4 years for

increasing their average weekly pension, already they are getting

much more bigger payment than the ordinary pensions and allowances.

That’s a few examples of Coalition Government economical and

social strategy in this year budget. You can see that this budget is

more designed for defence and security. Those areas need a lot of

money, that’s why we will be having the first deficit for a long time.

GST and other taxes simply will not bring enough revenue next year.

1 billion dollars of course from economical point of view isn’t the

biggest concern, because at this moment our economy is strong, but

for how long. It is an illustration that the taxation system needs

more improvements and changes.

Treasurer is saying that in the next budget we will be having

a surplus but nothing exactly is in that budget for pushing

magnificently our economy forward. Only spending in the

areas were we consuming monies, not enough for creating or

stimulating the economy. Everyone understands that we need

more money for border protection and Special Forces for fighting

with terrorism. That’s interesting that the Government didn’t look

for some improvement in our Defence structure, probably we could

find more room for improvement there. Of course that is not the first

time that Howard’s Government taking monies from health section

to finance Australian Defence Force (East Timor deployment).

I love Mr Costello’s explanation about changes in our ageing polices,

looking forward in 40 years time from now. Why didn’t he explain

how our education, justice, hospitals, nursing homes or other areas

would be looking in the next 40 years from now?

He didn’t tell us what precisely the Government means about new

prescriptions policy for disadvantaged people, mostly pensioners.

We need in that area a new system, but who has to pay for that.

What I understood is that the Coalition simply wants during

the 40 years scrub free prescriptions and everyone should pay

full price for drugs.

Jumping on disabled people and pushing them again to the workforce,

probably for increasing their injuries, it’s disgusting.

The Governments role is looking after the most vulnerable citizens

particularly disabled people. They need help, support and

encouragement for finding a suitable job for them and properly

paid for that. Not compulsory pushing by Centerlink from disabled

pensions and put them in an awkward, stressful situation without

any change to live their life as other normal people.

Too many things was not addressed in that budget, like the problem

with public liability insurance, future of private and public health

system and of course, any good improvement in a superannuation sector.

Mr Costello likes to look forward in a next 40 years but only on things

on what he likes to see. He doesn’t want to talk, as it should be, about

the future of economical and social problems. But don’t worry life goes

on and be careful what the Government is saying because in their views

there are too many question marks and predictions.

Already the interest went up and will be going up in the near future

to stimulate growing economy and inflation. It’s time to start saving

 money and be more careful with spending. Always compare the

economical data with what will Governor of Reserve Bank have to say.

I am looking forward to the next financial year with a little scepticism

and hope that inflation won’t rise above 4%, interest rate for homeowners

above 7% and unemployment will be steady around 7%, that way people

will be able to pay their mortgages without any sacrifices.

Generally speaking our economy it’s in a good shape and perhaps that

budget won’t improve our life style but we should feel a little bit safer.

 Back to home page