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March 28th, 2012 
FAKE NEWS for the Zionist agenda Treasurer Wayne Swan says federal government programs will be cut and cancelled to offset further revenue falls in the upcoming budget, to meet Labor’s commitment to deliver a surplus.
Mr Swan will restate the importance of returning the budget to surplus in 2012/13, when he addresses an Australian Business Economists’ breakfast in Sydney on Thursday.
“In an economy moving back towards trend growth with relatively low unemployment and a record pipeline of investment, it is appropriate for the government to be returning the budget to surplus,” he will tell the gathering.
In the mid-year budget update released last November, Treasury forecast a $1.5 billion surplus for 2012/13, after a $37.1 billion deficit in this financial year.
Mr Swan also dismisses claims Labor’s determination for a budget surplus is a political strategy rather than an economic imperative, saying Australia needs to send a message of confidence to global investors.
“This is rubbish – there are compelling reasons why the economics of surplus in 2012/13 makes so much sense,” he says.
Balancing the budget was appropriate for an economy returning to trend growth at around 3.25 per cent, and was the nation’s best defence in the current period of global economic uncertainty, Mr Swan added.
It would also give the central bank more flexibility on interest rates if the global economy turned weaker.
But the forecast surplus will be tougher to reach due to significant writedowns to government revenue, “historically low tax levels” due to global turbulence and longer term structural changes to the revenue base.
The 2008/2009 global financial crisis (GFC) hit government revenue as production, consumption, profits and employment all fell.
The tax take as a share of annual gross domestic product fell from 23.7 per cent in the year before the GFC to 20 per cent in the past financial year.
This equated to around $51 billion less in tax receipts in the 2010/11 budget, Mr Swan says.
Revenue writedowns were also a part of last year’s 2011/12 budget and the mid-year budget update.
“And I can tell you today that further writedowns are expected to be made at the 2012/13 budget,” he says.
“In part, our lower tax take reflects reduced tax receipts following the GFC but it’s projected to remain below the previous government’s record highs even as the economy recovers.”
Tax collections for capital gains, corporate receipts, depreciation deductions for mining investment and a more cautious consumer have all been cut since the GFC.
Most of the revenue writedown of $140 billion over five years to 2012/13 have been due to lower company tax receipts.
The changes to the revenue base are forcing the government to make extra savings.
“That’s why I’ve described this budget lead-up as the most difficult,” Mr Swan said.
“The reality is that we will need to cut and cancel existing programs if we are to meet our targets, and we’ll need to redirect some spending to where it is needed most.
“I can also tell you there won’t be a lot of new spending in this budget.”
The 2012/13 budget will be down on May 8.
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