Despite enjoying the highest Terms of Trade (ToT) in the nation’s history …
… the Rudd/Gillard/Swan Labor government still could not balance the budget.
Indeed, from 2009-10 onwards, as the ToT quickly rebounded from the 2008-09 GFC “dip” — thank you China — to scale new all-time record highs, the difference between their May Budget estimate, and their Final Budget Outcome, grew steadily worse*:
Moral of the story?
If you cannot manage a budget, you should never be allowed to manage other people’s money.
* The Final Budget Outcome (FBO) for 2012-13 has not yet been released by Treasury. Presently, the “estimate” is -$19.4 billion. On past form, the FBO is sure to be worse.