Promises - and Reality !

It is a simple fact of life that neither the Federal government, the state governments or the councils that serve each community have enough money to carry out the expectations of their citizens.   The present budget imbroglio is an attempt to wring more money out of the community without creating a taxpayer revolt.

To a point, the mess we are in can be directly sheeted home to the political system we have allowed to take root in this country.   Winning office and grabbing the levers of power takes precedence over common sense and the basic forms of fair play.   Political advantage is paramount - and the best interests of the country comes a long way behind when political moves are planned.

So it was before the last election.   Labor polling delivered a clear message that the present term in office was about to end - and the politicians set a booby trap for an incoming government.   Heaps of " pie in the sky " promises of better things to come - NDIS disability payments,  Gonski improvements in schooling, hospital improvements - all promised but not funded and not scheduled to be delivered until after 2017 - when the incoming government would have to find the funds to pay for them.

Public expectations having been aroused, there is now anger that plans are being cut back - and the university students are rioting because they will have to pay more for their degrees.  The states are in revolt because promised funds for schools and hospitals will not be honoured, and the vast majority of councils have a growing backlog of work that is completely outside their capacity to afford.

So - we have just two choices !   Either we cut back on public spending- right across the board and accept that some of the things promised are unrealistic, or we dig deeper and shell out more in tax in the many forms that it's collection takes.

Of course that where the political divide throws down the gauntlet.   The socialists demand that the tax man " soak the rich " and impose higher taxes, but unfortunately they are not as big in numbers as the common herd - and to create the tax wealth needed the Treasurer has to dip into every man and woman's pocket - and the most likely scenario to do that is a hike in the GST and a widening of it's reach.

There is pressure to increase company tax, but that tends to bring the " Goose that laid the golden egg "  homily into play.    It is industry that provides the much needed jobs and we compete with other countries on the world scene - and if our taxes are out of kilter in the international realm - investment in Australia quickly withers away.

We clearly need to repay the debt that is eating into our income by way of interest payments and we need to rationalise government outlay to reach a budget balance - and that is going to both lower expectations and deliver pain across the entire community.    There are ominous signs of world stability and the likely prospect of another 2008 scenario yet to come.

Time to clear the financial decks and prepare the ship of state for a rough passage if we hope to sail turbulent seas with as little discomfort as occurred during the last financial crisis.