
In its point-scoring endeavour to restore the budget to a surplus by 2012-13, Julia Gillard’s Labor government has decided to target the most vulnerable and needy in society.
Instead of targeting the high end of town and the corporate elite a punitive approach was chosen.
The budget deficit for 2011-12 is estimated to be $22.6 billion or 1.5% of gross domestic product. This compares with an estimated $49.4 billion deficit in this financial year, 2010-11. The budget is expected to return to surplus by $3.5 bilion in 2012-13.