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Federal Budget 'somewhat frightening', says Mortgage Choice chief

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Australian Broker | 05 May 2016, 07:00 AM Agree 0
The CEO of a major mortgage franchise has labelled the 2016 Federal Budget as “somewhat frightening”
  • Rate Saver | 05 May 2016, 09:27 AM Agree 0
    Someone set me straight (please)!

    "The shortfall between what the government earns and spends has risen to an amazing 21.5% of gross domestic product. "

    Australia's GDP was $1.62 Trillion in 2015 so 21.5% of that is $348.3 billion.

    The deficit announced in Tuesday's budget is only $37 billion (2.3% of $1.62Tr).

    Do I misunderstand the word 'deficit' - or are we too easily frightened?
  • SEQ Broker | 05 May 2016, 10:21 AM Agree 0
    John, as we all know the government is elected. Any government announcing even half of the real change required will not be elected. You know the ALP who can not count, just wants to raise taxes to feed their ex union officials, so that leaves the libs. Libs wont get elected if they step on the 3rd rail that is welfare and pensions. Just that block alone (which is growing) is enough to guarantee an ALP government some time in the future because they are addicted to government handouts. They vote for their own desires not what the country needs. Here is where we should all envy China!
  • Greg Watson | 07 May 2016, 08:14 AM Agree 0
    The 21.5% is talking about the accumulated government debt since 2009, the "running total" of years of deficits, if you like. What you say is very true but that just relates to next year's projected deficit. Hope that clears it up a bit! Cheers!
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