Thank Alan.

I was looking at the data from finance just last night, and while I did get to sleep, I had this recurring nightmare where Mathias Cormann keeps knocking on my front door asking for money.

I suspect Joe never really considered that he'd need a Plan B and that Palmer and Co would, after some games, pass all but a few hundred million of the budget. It also looks as if he has no real idea where he is going to get greater revenue from, or where he can make further cuts from. There is a limit to the aid budget and sacking another 10,000 public servants will cost more in lost revenue and governance than it could possibly save in salaries.

I think we are in for some interesting, if painful months ahead.

Thanks, Val.
Since this article was written, the Finance Department has released the monthly debt figures for July and August this year.
They show:
1. The government’s net debt projection for 2014-15 is $226.39 billion. That is an increase over last year’s target of $48.3 billion, or 27.1%.
2. In July this year, the debt increased from $202.46 to $208.15 billion;
3. In August, the debt expanded further to $217.55 billion. That’s an additional $15 billion in only two months, a rate of increase above 3.6% per month or 54% annually;
4. Already, in two months, Hockey and Cormann have borrowed 63% of the new borrowings they want for the entire year;
5. The total interest bill for 2014-15 is forecast to be $14.7 billion. Last year, during which Labor managed the economy for only five weeks, it was $10.8 billion. The year before, which was all Labor’s management, the bill was $8.3 billion. So a 77% increase in interest payments in the Coalition's first two years — if this year’s target is met.
6. So the total increase now — well, at the end of August anyway — above the level Labor left last year is $39.45 billion. Up an extraordinary 22.1% already.
7. At the current rate of expansion of borrowings, the total net debt left by Labor will be doubled by next July.
See here:
http://www.finance.gov.au/sites/default/files/mfs-july-august.pdf
Or google: That's not a debt disaster.
Cheers, AA

AA,

You have provided wonderful information on how the interest on Labor's debt is devastating to the budget, and how Labor's budget of 2013/14 has left debt far higher than Labor promised (again).