Catherine McGregor: Play-it-safe Budget reveals the real Malcolm
THE government was too timid to cut expenditure in this Budget, a lost opportunity that makes them look like Paul Keating Mark II, writes Catherine McGregor.
Federal Budget
Don't miss out on the headlines from Federal Budget. Followed categories will be added to My News.
Scott Morrison’s speech could easily have been delivered by any Labor treasurer. Indeed, in language and tone it would have offended Paul Keating at his peak in 1987 and 1988 when he invoked his “banana republic” warning about a nation living beyond its means.
When he had control of the levers of the Australian economy, Keating exposed Australia to the shock of globalisation. Recently, he declared the neoliberal project, which he had pursued with the zeal common to all converts, had reached exhaustion point.
The global economy has gone full circle and the virtues of small government and surpluses have become vices according to Keating. Somewhat surprisingly it appears Treasurer Scott Morrison agrees with Keating Mark II.
Budget 2017: From singles to families, sole parents and retirees — this is what it means
Although Morrison paid lip service to debt reduction there is no urgency in his plans to return to surplus. Rather than slashing bloated programs Morrison now defines fiscal success as merely arresting growth in debt. And even his leisurely budget repair program relies on optimistic forecasts of both global and domestic growth and rising wages for Australian workers. There is little margin for error and our vulnerability to external shocks is acute.
Budget 2017: Your five-minute guide
If the government is too timid to cut expenditure in this Budget, then it certainly will not attempt it later in this term. It is a lost opportunity.
And it will offend key elements of the Coalition’s core constituency.
Elite conservative opinion is likely to be incensed at what they perceive as policy cowardice. But the Prime Minister and his treasurer may well be delighted at such criticism. If this Budget is Labor lite it is also Trump lite.
It represents a gamble by the Prime Minister and his treasurer that the right-wing populist movement which is eroding its base vote is actually for sale. While there is fear about migration and irritation at notions of political correctness gone mad, the government believes the drift to Pauline Hanson is a revolt against globalisation and falling living standards.
Budget 2017: Medicare levy increased by 0.5 per cent to fully fund NDIS in Federal Budget
Morrison offered soothing words to those whose real wages have stagnated.
He emphasised essential government services upon which many rely for maintaining living standards. Although there was an echo of John Howard’s concern for traditional families, the dominant theme is redistribution of the proceeds of growth to small businesses and salary earners.
Arrogant banks and multinationals were singled out for harsh rhetoric, which would have set Wayne Swan’s heart fluttering.
Yet, despite shirking tough decisions this is a risky budget for a prime minister who is still viewed with suspicion by a significant segment of his party base.
“When will the real Malcolm stand up?” has been a popular refrain. I suspect he has. He may have created as many problems as he’s solved.
Originally published as Catherine McGregor: Play-it-safe Budget reveals the real Malcolm
‘Responsible’: Chalmers’ big budget hint
While the Treasurer urged “caution and conservatism” over a possible surprise surplus, he has left the door open for further cost-of-living measures.
‘Back on track’: Dutton’s new ad pledge
Opposition Leader Peter Dutton has attempted to show off a softer side to his political personality by debuting a new ad where he promises to get Australia “back on track”.