So it is now revealed that Joe Hockey’s spending blew out to 26.3% of GDP and the now Treasurer, Scott Morrison, is bringing it back to 25.9%. Interestingly, Morrison’s aspiration will put the figure as high as it was at the height of the global financial crisis.
Chris Richardson of Deloitte Access Economics has predicted that the combined deficits over next four years will be $38 billion more than originally forecast.
While there have been huge falls in revenue following a collapse in commodity prices, highly-respected economist Saul Eslake asserts that “the well of budget repair has been poisoned by the 2014 budget.”
Mr Morrison could argue that Joe Hockey handed him a ‘poisoned chalice’ but he and Prime Minister Turnbull are both still happy to sign off on it.