Australia to be in debt "for as far as the eye can see"
THE Abbott Government's hopes for a budget surplus before 2018 are "well and truly toast", with a new major report predicting an Australia in debt for "as far as the eye can see".
The findings by Deloitte Access Economics takes a swipe at the Senate for not allowing the government to curb spending, while simultaneously tackling the Federal Government for actually spending more instead of cutting.
The Coalition has announced $2.5 billion of policies for this financial year, and $2.9 billion for the next one.
Much of this was thanks to deals struck with the Palmer United Party to ensure the magnate's support for dumping the carbon and mining taxes.
Those extra costs though pale in comparison to the financial losses caused by tumbling of resource prices, which are now taking a toll on government coffers.
The government is expected to have $2.3 billion less than expected between now and mid-2015.
However bad that news is, that shortfall will almost triple the following year, with government revenue to be $7 billion worse than expected by the 2015-16 financial year.
The report finds that after Australia rode the boom through much of the early noughties, we are now faced with bad news but the Senate (and voters) are refusing to take their medicine.
"When even the Greens oppose sensible fuel tax policy - the restoration of indexation to fuel excise - it is clear something is wrong with Australia's political processes," the report states.
"If our nation can't make the easy choices, how are we going to make the hard ones?"
Later Deloitte explains that it has done its calculations on the government's plan, assuming a "mature national conversation" on the Budget.
"If Australia's politicians can't craft a compromise, then better Budgets will be even further away than our forecasts have them here."