Arab Today, arab today australia budget blues in land of mining boom
Last Updated : GMT 20:20:04
Arab Today, arab today
Arab Today, arab today

Australia budget blues in land of mining boom

Arab Today, arab today

Arab Today, arab today Australia budget blues in land of mining boom

Sydney - AFP

As China's economy slows and Australia begins its painful transition away from a decade-long mining boom, Treasurer Wayne Swan will have little to offer voters seeking an election-year spending spree Tuesday. The government has spent months priming the public for a significant plunge in revenues -- due to sluggish corporate tax earnings -- when Swan unveils his final budget before Australia goes to the polls on September 14. The stubbornly high Australian dollar has been fingered as the culprit, squeezing domestic industries at a time when fluctuating commodity prices due to cooling Chinese growth have seen export earnings slide. Australia, the standout resilient economy during the financial crisis, is showing signs of fatigue. The central bank Tuesday slashed interest rates to a record low 2.75 percent to stimulate activity. The China-driven mining industry, long its major asset and economic engine, is approaching an investment peak and a bumpy transformation lies ahead as triple-A credit-rated Australia seeks alternative sources of growth. Swan's economic stewardship through the global downturn earned him Euromoney's Finance Minister of the Year in 2011, and he boasted that Australia would again beat the world -- this time by returning to surplus in 2013. What a difference 12 months can make. "What has changed has been a fundamental writedown of revenue, which is unprecedented, which couldn't be forecast or predicted," Swan told the Nine Network on Sunday as he defended his decision to delay returning to surplus. Swan said he was ready to "take my medicine" politically for the decision. "Getting the big economic decisions right to support Australian jobs is what people expect of me, no matter how uncomfortable that is politically," he said. Rather than the splurging typical of an election year, Sydney University economist Colm Harmon said the budget was likely to be a "bland affair" aimed at "dampening the sense that somebody's lost control of the steering wheel". "Anything by way of spending would be unbelievable; anything too dramatic in terms of cutbacks will be too damaging," said Harmon. If opinion polls are reliable, Prime Minister Julia Gillard's Labor party is on track to lose power in a landslide to the Tony Abbott-led conservatives come September. It is a situation that confounds outsiders according to economist Stephen Koukoulas, formerly Gillard's senior economic adviser. "Globally people are saying 'Gosh, what are you guys worrying about? You're growing, you've got minuscule levels of government debt, you're in the fastest-growing region in the world," Koukoulas told AFP. "'You've got 5.5 percent unemployment, you've got government debt that's 10 percent of GDP, your deficit's one percent of GDP. What on earth is bugging you guys?'" According to Harmon, who arrived in Australia from austerity-hit Ireland just nine months ago, the government made a rod for its own back by repeatedly "fetishising" the political imperative of a budget surplus. To justify reneging on that promise Harmon said Labor had been forced to resort to "the language of 'let's share the pain'" -- the last thing voters want to hear in an election year, and rhetoric that jars with reality. "Australia is a million miles away from any of the catastrophic scenarios that other countries find themselves in," said Harmon. "While there are plenty of bumps in the road potentially -- Chinese demand, housing market issues -- the country has more than the ability to absorb that. "The economic realities are very sound indeed. Unfortunately the political issue (of a deficit) is resonating with the public." Nick Economou, politics analyst from Monash University, said voters had largely stopped listening and had only "a sort of macabre interest to see how the condemned are going to behave as they go to their execution" on budget night. "The voters have made up their minds and it's all over," said Economou. "In politics people are never satisfied, it doesn't matter what you do. And the worst thing you can say to them is 'You've never had it so good'."

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today australia budget blues in land of mining boom Arab Today, arab today australia budget blues in land of mining boom

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday