The Centre for Independent Studies looks at the Australian Budget and isn’t impressed:
In Budget 2015, the government has waved the white flag on attempts to reduce the size of the state. It has given in to the vested interests calling for your tax dollars.
The budget is littered with references to the fairness of paying more tax, and hands out government largesse to the middle class. It is little wonder that government spending is at almost record high levels. Excluding the 2009-10 budget at the height of the GFC, government spending as a percentage of GDP is at its highest level since the recession in the early nineties. Net debt will exceed $300 billion inside two years and gross debt will now peak at nearly $600 billion — and that’s if we are lucky.
The government’s so-called credible path to surplus is built on artificial assumptions of a return of economic good times and rising tax revenue through bracket creep. Spending remains far above the level of the Howard government. It is even above the level of the Gillard / Rudd governments. It is disappointing that those in charge no longer believe in the benefits of small government.
In NZ spending as a % of GDP is dropping. It peaked around 35% and is now around 30%. I think 25% would be a good level to end up at.