Swan Raises Govt Borrowing Limit By Another $50bn – And Don’t Ask Questions

12 May

But but but … we’ll have a surplus budget in 2013. Honest we will:

The Government has blamed Australia’s summer of disasters for its move to raise the cap on government debt by $50 billion.

As Treasurer Wayne Swan was congratulated by colleagues after Tuesday’s budget speech, Assistant Treasurer Bill Shorten introduced draft laws allowing the government to increase the amount it can borrow from $200 billion to $250 billion.

And what’s more:

The proposed legislation would also remove a requirement that the Treasurer explain why the extra money is needed.

Barnaby is right.

4 Responses to “Swan Raises Govt Borrowing Limit By Another $50bn – And Don’t Ask Questions”

  1. Vadim May 12, 2011 at 1:14 pm #

    This is amazing. They raise the borrowing limit, cut down on benefits, reduce dupport to the middle class and are still in a massive deficit. This is at the time of a once in a lifetime mining boom. Mindboggling!

    • JMD May 12, 2011 at 6:15 pm #

      Personally, I’m having trouble with this ‘mining boom’. If things are so hot in the mining sector, why isn’t the share price of the junior miners appreciating.

      They aren’t booming, that’s for sure.

  2. JMD May 12, 2011 at 6:11 pm #

    Interesting that this would be going on here at the same time as in the USA. It would be worth keeping your eyes & ears open for reports of it happening in Canada, UK, Germany etc.

  3. Abe May 12, 2011 at 8:34 pm #

    Maybe the big mistake was to introduce a cap of $200bn at a time when they were forecasting deficits that would imply outstanding debt of $300bn.

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