Showing posts with label government spending. Show all posts
Showing posts with label government spending. Show all posts

Wednesday 18 May 2022

Australian Federal Election May 2022: there is no new version of the Liberal MP for Cook Scott John Morrison, he has signalled an intention to put a blow torch to the bellies of the poor and vulnerable if the Coalition retains government


Four days out from the 21 May 2022 federal general election Liberal MP for Kooyong & Australian Treasurer Josh Frydenberg announced that after the election a Morrison Government would continue applying the knife to funding of federal government services to the tune of $3.3 billion. 


A total of $2.7 billion will be returning to the Treasury coffers by way of across the board annual savings it expects from increasing the current 1.5 per cent efficiency savings requirement to 2 per cent over the next three years.


The Guardian quoted Prime Minister Morrison on 17 May 2022: That is something that I think is entirely sensible and, frankly, taxpayers would be demanding, that these types of sensible efficiencies are achieved and that is part of the process of managing a good budget,” the prime minister said while campaigning in Darwin on Tuesday. “It doesn’t impact on programs or services at all. It never has.”


According to Prime Minister Morrison and the Treasurer this increased cost cutting by way of efficiency dividends does not apply to the National Disability Insurance Agency, Safe Work Australia, Emergency Management Australia, the National Recovery and Resilience Agency, the ABC, the SBS, or small entities with fewer than 200 staff.


However it does appears to include in Morrison's own words "management of staffing arrangements" over the next three years.


On 17 May ABC News reported that: Prime Minister Scott Morrison was asked what agencies would be forced to tighten their belts and whether, given his praise for the public service over the way it helped Australians during the pandemic, it was a "mean spirited" way of rewarding people for their hard work.

"This is responsible budgetary management. We've made commitments in this election and we ensure that we pay for them," he said.

"That's how you manage your budget, you live within your means."


So where will this $3.3 billion be coming from? Especially the est. $600 million in savings which appears to stand outside three years of efficiency dividend savings.


It isn't hard to imagine that Scott Morrison, with another three years in front of him before having to face the national electorate again will return to his perennial favourites - further reducing the actual number of staff or hours worked in government departments and agencies by starving them of real funding increases, as well as further restricting eligibility for social service/welfare programs and removing more treatment items from Medicare rebates/bulkbilling & from the universal free public hospital system.


Individuals and families are already impacted by changes to eligibility and/or rebates for an estimated 188 cardiac surgery, 150 general surgery, 594 orthopaedic items, including hip, shoulder, hand & cardiac surgeries and a number of diagnostic imaging procedures. 


According to National Seniors Australia by 1 June 2021; Nine procedures have been deleted from the MBS entirely, and other changes may include tweaking the definitions of certain services.


Then there is the possibility of sudden removal of bulkbilling or enhanced bulking billing for certain specialist consultations

such as the one playing out right now in a mental health program which inordinately impacts on regional and remote Australia.


ABC News, 16 May 2022:


..Psychiatrists say the Medicare cut has forced hundreds of patients to cancel or scale back their appointments, leading to the worst outcomes for patients some say they have ever seen.


Ms Pomeroy from Mackay had seen her psychiatrist on an almost monthly basis for the last three years for chronic anxiety and Post Traumatic Stress Disorder (PTSD).


But like other patients across rural and regional Australia, she said she was sprung with the news she would no longer have access to bulk-billed psychiatry appointments over telehealth.


"I went into shock," she said.


"It put me in a tailspin where I thought, 'What am I going to do now?'"


'It's almost like Noah's ark'


In January, a 50 per cent loading — known as item 288 — for psychiatrist video consultations for rural and regional patients was cut from the Medical Benefits Scheme (MBS).


The ABC understands about 45,000 patients claimed the item across 2020-21.


Brisbane-based psychiatrist Dr Bawani Marsden said the last five months had been devastating for patients as psychiatrists were left to choose who, if anyone, they could bulk-bill without the extra loading.


"It's almost like Noah's ark where you're deciding who you want to take with you and who you don't mind sinking and drowning," he said.


The option to bulk-bill patients remains. But without the extra loading, practices say it is unviable to provide to everyone.


A rebate for patients was still available, but Dr Marsden said about half of her rural and regional patients had cancelled because they now could not afford care.


"Almost a decade we've had that support and within a couple of weeks there was an announcement that it's going to be removed," she said.


"We're talking about a peak time here, we're coming out of COVID … and they've taken away a lifeline."…..


Credentialed mental health nurse Michelle Eastwell shakes her head.


"For our patients, it's gone from this seamless, private, de-stigmatised way of accessing mental health services to now … 'what's available?'" she said……


the Royal Australian and New Zealand College of Psychiatrists (RANZCP) has campaigned against the move and said the taskforce recommended finding an alternative solution which had not been done.


"We have put forward a number of solutions including a bulk-billing incentive … for people with affordability issues," said RANZCP's president Associate Professor Vinay Makra.


"Some of our patients are the most vulnerable in society and the government must look at that vulnerability factor."


"If they do not receive that support from a psychiatrist … some will become unwell, and needing admissions to hospital [would] put additional impost on health and hospital systems that are already stressed."


Labor has pledged to reintroduce Item 288 if it gets elected on 21 May 2022.


In March 2022 it was reported that the Morrison Government is considering removing nursing home residents' access to professionally trained allied health services as a way of reducing Medicare costs.


In a media release on 17 May 2022 the ACTU estimated that the announced cost cutting would result in the loss of 5,500 public service jobs.



Tuesday 2 April 2019

A federal budget for hopeless optimists was delivered by the Morrison Government on 2 April 2019



https://youtu.be/C64ZC-0Oju4

This was Australian treasurer and Liberal MP for Kooyong Josh Frydenberg delivering his first budget speech on 2 April 2019:

Tonight, I announce that the budget is back in the black and Australia is back on track.

For the first time in 12 years, our nation is again paying its own way….

John Howard and Peter Costello paid off Labor’s debt. And tonight the Morrison government sets a path to do it again, without increasing taxes.

This matters because over the last year the interest bill on the national debt was $18bn.

And this was in a low interest rate environment.

This is money that could have built 500 schools or a world-class hospital in each state and territory.

We are reducing the debt and this interest bill.

Not through higher taxes, but by responsible budget management and by growing the economy.

In the actual budget papers he asserts that:

Net debt in 2019-20 is expected to be $361 billion, representing 18 per cent of GDP. By 2022-23, net debt is expected to decline to $326.1 billion (14.4 per cent of GDP). Net debt is then projected to be eliminated over the medium term (2029-30)

So whose debt is Frydenberg complaing about and why is the economic furture so suddenly rosy?

At the end of the month in 2013 in which Tony Abbott became Prime Minister of Australia the gross national debt stood at est. $220.67 billion and net national debt was $174.55 billion. At the time net national debt was in the vicinity of 13% of GDP.

By 2 April 2019 the Abbott-Turnbull-Morrison Government had raised the gross national debt to $534.42 billion. 

That's more than double the national debt left by the previous Labor federal government.

Frydenberg is predicting that gross national will rise to $627.26 billion by end of June 2019 with net national debt coming in at $373.47 billion and net debt predicted to come in at 19.2% of GDP by end of June. 

By 30 June the federal government will have paid $18.15 billion in interest on this debt in the 2018-19 financial year.

I don't know about anyone else but to me it definitely looks as though the Liberal-Nationals Coalition governments have well and truly contribted to the national debt in the last five and a haf years.

According to the 2019-20 Budget that Frydenberg just delivered gross national debt is expected to rise for the next three financial years while at the same time it is hoped that net national debt will decrease.

When it comes to national debt a net decrease in the debt does not always mean the actual government debt is falling - it simply means that the government of the day expects to have enough assets and income to honour the total debt if the entire amount was theoretically called in by the debtors.

However, Frydenberg predicts that both net national debt and interest that the gross debt attracts will fall over the next four financial years, despite federal government expenses increasing and expected tax receipts (including GST receipts) being revised down by $26 billion over those same four years.

Frydenberg also says the Morrison Government will deliver an underlying cash balance of $7.1 billion by 30 June next year even though that underlying cash balance is $4.1 billion in deficit this year. To do that the Treasurer has to pull $11.2 billion out of his back pocket in the next fourteen months.

Months in which it is committed to delivering the cash splash it has included in this pre-election budget.

An ordinary voter like myself has to ask: Where's the money coming from to supposedly get the government books back into the black?

The Morrison Government must be privately asking itself the same question as Budget Statement 7 only gives that government a 70 per cent chance of being able to bring in a $7.1 billion suplus this coming financial year

Budget 2019-20 papers can be found here.

NOTE:

Only one item in the Morrison Government 2019-20 budget is likely to be passed on 3 April 2019 before the Australian Parliament is dissolved to meet the required timeline to issue  writs for the federal election. This means that all the budget promises made by Frydenberg are on the never never and if the Coalition Government wins that election it may change some budget details come 30 June.