Joe Hockey to unveil Labor's $47 billion 'disaster': Australia is facing a decade of deficits
THE federal government will post a $47 billion deficit tomorrow and warn of a further decade of deficits when it exposes the full scale of the "fiscal disaster" it claims has been left by Labor.
So "disastrous" are the numbers that Treasurer Joe Hockey is expected to warn that, without a dramatic realignment of public sector spending and revenue through improved economic growth, the nation will face deficits for the next 10 years, government sources have confirmed.
The Daily Telegraph yesterday learnt that the Mid-Year Economic and Fiscal Outlook (MYEFO), to be released tomorrow, will reveal a further $17 billion deterioration in this year's financial position since Labor's economic statement in August of a $30.1 billion black hole.
It will also show the collapse in revenues of about $1 billion a week since the Gillard government's May budget - which forecast a deficit of just $18 billion for 2013/14 - has accelerated and is likely to be revised to more than $2 billion a week.
Without action to arrest declining revenues and significant cuts to spending programs, Treasury officials are believed to have warned that a return to surplus would be unlikely before 2022.
While around half of the latest blowout to $47 billion includes measures by the new Coalition government to boost the Reserve Bank's cash reserves by $8.8 billion this year, the bulk of the fiscal collapse will be slated home to Labor.
Labor's failure to properly cost its border protection policies and underfunding redundancies for public servants have added to the blowout.
The "alarming" revenue writedowns would have led to an ever greater deficit, a senior claimed, had the new Government not been able to partially offset them with significant savings programs.
"It is disastrous," a senior government source said.
"It's mind boggling the size of the mess Labor has left."
Shadow Treasurer Chris Bowen yesterday tried to ring-fence Labor's responsibility, claiming every dollar of a deficit over $30.1 billion would be owned by Mr Hockey.
But Prime Minister Tony Abbott warned that MYEFO would expose Labor's role in presiding over the "most disastrous period for budget management in our history".
"What we have discovered the more we dive deeply into the budget, the extent of Labor's fiscal disaster ... the extent of Labor's fiscal deception," he said. "Never has the budget deteriorated as quickly as it did under Labor despite the fact we had terms of trade at record highs.
"So this is a period of monumental economic incompetence under the Labor Party. The repair job begins."
Part of the repair job will be restoration of the NSW roads budget which the government will claim was left $220 million short by the collapse of Labor's mining tax. Projects left in limbo, to be restored in MYEFO include $80 million of New England Highway works at Bolivia Hill near Tenterfield, with a 3km section to be realigned to improve safety.
I hope our Joe sorts this out pronto, so the incoming Labor government will have some funds to restore all those essential programmes the current government has ruined 
Psssst ... Joe ..... you've only got a couple of years .....
PCT: "I hope our Joe sorts this out pronto, so the incoming Labor government will have some funds to restore all those essential programmes the current government has ruined"
The essential programmes being ??????? .
" so the incoming Labor government will have some funds" That would be nice if the outgoing (outgone) Labor government had actually left some funds instead of a hefty deficit, and going by their last performance, and I do not mean the Poor Me and Ruddy circus, if they were left any funds they would not last long.
Now with the ner-ner-ner myopic sniping set aside, I would suggest PCT that you (and some others here) read some reputable information sources i.e. Parliamentary Budget Office or Treasury spring to mind
"Two independent reports from the Parliamentary Budget Office and the federal Treasury reveal a sharp decline in the structure of the budget that will last for most of the decade."
Frankly I do not give a hoot about the sand-kicking myopics thoughts on the economy, because where economics are concerned I have formed the opinion that hardly anyone (if that) here, have a practical knowledge (personal) of what is current, and important financially, but are just (both colours) content to disgorge the "party line" and overlook the actual situation because it is too hard to interpret, or accept.
IS: "how does the science involved in the Direct Action policy sit with your scientific knowledge MM ?"
".........and overlook the actual situation because it is too hard to interpret, or accept...."
Consider possible quantitative easing, US domestic economic improvement, USA/AU $ exchange rate etc,etc.
FWB: "And how many of you LNP gloaters out there held out their hands to accept the incredibly generous cash and other family handouts under the Labor government. Treasure the memory."
"incredibly generous cash and other family handouts" Please FWB enlighten me.
Also note the contents of this graph:
FWB you might notice that the LNP gloaters are contributing the largest slice of the generous pie for consumption by the ALP goaters!
the libs are spending more getting rid of labor projects and programs than they'll make on removing them . great policy sure.
its all about ideaology, not deficit and budget. i think they may be a little slow (challenged) not one good mind on the front bench, turnbull wastes his skills on telling porkies, he's a lost cause. bernardi is more potent than him 
@monman12 wrote:FWB: "And how many of you LNP gloaters out there held out their hands to accept the incredibly generous cash and other family handouts under the Labor government. Treasure the memory."
"incredibly generous cash and other family handouts" Please FWB enlighten me.
Also note the contents of this graph:
FWB you might notice that the LNP gloaters are contributing the largest slice of the generous pie for consumption by the ALP goaters!
there's plenty of financially challenged LNP supporters, they come here and post . there are also plenty of well heeled alp supporters too.
