Last night, the Federal Treasurer released the annual ‘fiscal statement’ (aka ‘The Budget’) and everyone is jumping up and down at the size of the spending proposed. Yes, the deficit and debt hysteria has been abandoned for the time being – but only because this is an election year (presumably). This is an announcement government (with little action) and the actual bigger spending initiatives are not next year but in the hazy forward years which means we can largely disregard them. Further, what most commentators are ignoring is that the Government is proposing a record fiscal contraction next year (2021-22) and is relying on (unrealistic) growth in household consumption expenditure over a period they project real wages will fall. If their projections are to be believed then household debt will rise significantly beyond its already record levels. But I don’t believe the projections anyway. In terms of my wish list, the fiscal strategy fails – no funding for carbon retrenchment, little for social housing, nothing for higher education and lots of handouts for their business mates who will pocket the funds and pay themselves very well in the process.