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| Scott Morrison releases mid-year economic update – politics live | Scott Morrison releases mid-year economic update – politics live |
| (35 minutes later) | |
| 1.38am GMT01:38 | |
| Earlier, I mentioned the government walking away from the florid budget emergency rhetoric it used so volubly in opposition. It’s all about rebalancing now. Here’s a small case study of that. | |
| This is from an interview the finance minister Mathias Cormann did this morning with Virginia Trioli on ABC news breakfast. It doesn’t need me to set it up, the back and forth will be clear if you read on. | |
| Q: If the deficit comes in between $35 to $38bn will that be described as a budget emergency? | |
| Mathias Cormann: | |
| Well, what you will see in the budget update today, as the government continues to make progress in putting Australia on a stronger economic and fiscal foundation for the future, our economy is transitioning from significant resource investment-driven growth to broader drivers of economic activity and when it comes to the budget, what we were able to see at budget time was that the budget position was improving over the forward estimates and that we were getting back into balance at an appropriate speed and of course since budget time there have been some additional headwinds. The price of iron ore has fallen further. Everybody knows that that does have flow-on consequences. The government’s focus has been on policies to strengthen growth such as the innovation statement released last week but also on controlling expenditure – and what the budget update to be released today will show is wherever we are to incur additional payment they have been more than offset by reductions in expenditure in other parts of the budget and so that overall expenditure in this budget update is lower than what was forecast at budget time. | |
| Q: That’s a good speech but it doesn’t answer my question which is whether that figure between $35 and $38bn would be described as a budget emergency. Let me ask it another way. If you were in opposition and the Labor government came back with that figure ... would that be acceptable to you? | |
| Well, we are on a credible path back to surplus. | |
| Q: That’s not my question. I’m going to jump in. That’s not my question and I’m happy you’re on a credible path and you believe that but we’ve had lot of rhetoric over the years about what’s acceptable and unacceptable when it comes to a deficit. If we hit the figure between $35 and $38bn, if you were on the other side, would you stand up and say, “Fair enough, good figure.”? | |
| Virginia, I’m happy for you to go into the politics and into the commentary. | |
| Q: That’s not the politics, minister, that’s how you’ve played it. You’ve played it very hard with strong rhetoric so does the rhetoric apply to you? | |
| Well, Virginia, you can go into the politics and you can try and get me into the commentary. | |
| Q: How about trying to get you to answer a question? | |
| Updated at 1.38am GMT | |
| 1.25am GMT01:25 | |
| Here’s a sample of various MYEFO news previews this morning. | |
| In addition to those news pieces that are about to be overrun by events, Fairfax economics editor Peter Martin has also written a good column about why this MYEFO statement will be bad news, and why we need it to be bad news, because the government needs to “stop building unlikely Senate decisions into their forecasts and ... be honest about what is happening to revenue.” | |
| The commentary is timeless and might be one you bookmark for later. You can read Peter here. | |
| 1.10am GMT01:10 | |
| What was I saying before about red ink? Courtesy of David Uren, economics editor at The Australian (shared by his colleague David Crowe and now, me) – the top line of this chart is the official budget forecasts for the deficit. The red column is the blowout predictions of various market economists. Average blowout $33.3bn. | |
| Another budget cheat sheet for #MYEFO today, from David Uren's work on Monday. More online: https://t.co/qVZ6VGPFPV pic.twitter.com/D0DpD1uejf | |
| 1.00am GMT01:00 | 1.00am GMT01:00 |
| Dust off your calculators .. | Dust off your calculators .. |
| Greetings and welcome to today’s live coverage of the mid year economic and fiscal outlook. Yes I know we folded Politics Live in the final sitting week of parliament but MYEFO beckons. I did hint we might be back, and boom, here we are. Boom. Yes, carrying on now. | Greetings and welcome to today’s live coverage of the mid year economic and fiscal outlook. Yes I know we folded Politics Live in the final sitting week of parliament but MYEFO beckons. I did hint we might be back, and boom, here we are. Boom. Yes, carrying on now. |
| Regular readers will require no introduction to today’s festivities, but in case you are not a hard core politics tragic, merely curious, idly exploring the interwebs at your desk at a time of year when many people are now just pretending to work in order to fill up the hours ahead of the latest work Christmas lunch before bolting home early ... welcome to MYEFO. | Regular readers will require no introduction to today’s festivities, but in case you are not a hard core politics tragic, merely curious, idly exploring the interwebs at your desk at a time of year when many people are now just pretending to work in order to fill up the hours ahead of the latest work Christmas lunch before bolting home early ... welcome to MYEFO. |
| Under the charter of budget honesty, the government is required to update the national economic and fiscal outlook six months after the release of the budget. As well as revising key forecasts, MYEFO accounts for all of the decisions taken since the budget that affect either spending or revenue. | Under the charter of budget honesty, the government is required to update the national economic and fiscal outlook six months after the release of the budget. As well as revising key forecasts, MYEFO accounts for all of the decisions taken since the budget that affect either spending or revenue. |
| It’s a little early Christmas present that lobs about this time each year, generally content rich, with bonus charts. | It’s a little early Christmas present that lobs about this time each year, generally content rich, with bonus charts. |
| MYEFO, December 2015 is not expected to be spectacular news for tidy souls who like their columns to add up and contain no red ink. Early mail suggests debt up, deficits up, growth down, and some pruning of expenditures in order to offset more than $5bn the government has spent since the budget. | MYEFO, December 2015 is not expected to be spectacular news for tidy souls who like their columns to add up and contain no red ink. Early mail suggests debt up, deficits up, growth down, and some pruning of expenditures in order to offset more than $5bn the government has spent since the budget. |
| Remember that “budget emergency” the Liberals used to talk about when campaigning for government? Well, two years into their term in office, it’s still with us. But the official terminology has changed now that it’s the government’s budget emergency and not Labor’s budget emergency. Now the government talks about the challenges associated with the economy rebalancing, because that’s much more soothing. | Remember that “budget emergency” the Liberals used to talk about when campaigning for government? Well, two years into their term in office, it’s still with us. But the official terminology has changed now that it’s the government’s budget emergency and not Labor’s budget emergency. Now the government talks about the challenges associated with the economy rebalancing, because that’s much more soothing. |
| A couple of procedural things before we set the scene and then embark on the live coverage. | A couple of procedural things before we set the scene and then embark on the live coverage. |
| You don’t have to wait for any of us. The Politics Live comment thread is open for your business and you can find me on the twitters @murpharoo where I apparently share fan fiction and other regular insights, mainly about politics, and sometimes about my cat. These contributions are variously characterised as very helpful or not at all helpful, usually simultaneously. Feel free to join the conversation there. It’s generally a hoot. | You don’t have to wait for any of us. The Politics Live comment thread is open for your business and you can find me on the twitters @murpharoo where I apparently share fan fiction and other regular insights, mainly about politics, and sometimes about my cat. These contributions are variously characterised as very helpful or not at all helpful, usually simultaneously. Feel free to join the conversation there. It’s generally a hoot. |
| So chop chop, let’s tune the analytical hamstrings. Refresh the teapot, help yourself to a dainty mince tart. Here comes MYEFO. | So chop chop, let’s tune the analytical hamstrings. Refresh the teapot, help yourself to a dainty mince tart. Here comes MYEFO. |