Record levels of debt-funded public spending is the singular standout feature of this year’s Federal Budget. Federal government debt is fast approaching a staggering one trillion dollars (that’s one million million or $1,000,000,000,000).
For Newcastle, the previously announced airport infrastructure upgrade and a brand new gas-fired power plant are the big-ticket items.
Yet, it is the plethora of programs that seek to plug the holes emerging from our COVID era society that will likely affect Novocastrians the most.
Big budget posts for aged care, mental health, childcare, and tax cuts for income earners have been slated by Treasurer Josh Frydenberg.
Economics professor Bill Mitchell from the University of Newcastle praised the social program spending to assist the population adjust, although pointed to a lost opportunity saying to ABC radio:
“I would have much preferred them to make some big structural changes rather than going back to relying on us just spending more than we can afford and running up more household debt.”
Federal Shortland MP Pat Conroy (Labor) also welcomed the additional social spending though lamented the shotgun nature of the budget.
“It really is a hodgepodge of announcements rather than a coherent plan on how to build a better Australia,” he said.
Federal Newcastle MP Sharon Claydon (Labor) criticised the lack of action on social housing.
“This budget does nothing to address the housing crisis Australia is facing and the fundamental lack of affordable homes,” Claydon said.
“There are announcements like the Family Home Guarantee to help single parents buy a house, but this will only help 2500 of the 1 million single parents each year, with the government only investing a measly $300,000.
“There are more than 1,200 applications just for social housing in Newcastle—that’s just public housing.
“We then have the private rental markets which showed last year that there were zero properties available in the Newcastle area for anybody on unemployment benefits.
“The level of unmet need is enormous, and this is what’s so unforgivable for the federal government; their COVID-19 Recovery Response did not include the building of new social housing stock.”
With 2021 becoming a likely election year, we can expect a raft of spending announcements soon as the big parties’ wrestle for parliamentary power.
NN Editor