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Budget Estimates May Shine Light on Economic Strategy

  • Artigo
Light Earlier today (Monday May 25) the Senate began committee investigations into the 2009-2010 Federal Budget. The Budget Estimates hearings will take place all of this week (including if necessary Friday) and all of next week (again including Friday if necessary). Senate Estimate hearings are broadcast live over the Internet at www.aph.gov.au/live

The practice of Senate Estimate Committees dates from 1970 when the Senate decided to establish committees to consider the proposed spending estimates put forward by the Government in its Budget. The establishment of the Committees was intended to allow for more detailed and effective scrutiny of proposed appropriations - spending - by the Government.

In 1994 separate Estimate Committees were abolished when it was decided that it would be more efficient for those Senate Committees that scrutinised Government legislation to also examine the appropriations to those departments and agencies that were responsible for the administration of the policies.

You can find out more about the Senate Estimates process in this Senate Brief.

Strangely the Treasury Department, whose estimates are considered by the Senate Economics Committee, will not come before Senators until next week (June 1) while the Department of Finance and Deregulation is before the Finance and Public Administration Committee today. I say 'strangely' as Finance and Treasury are the heart muscles of the Budget and there is a genuine public interest in how the Budget was constructed and what the macro-economic forecasts and projections mean for Australia.

More than any other Budget in recent memory, the basis of the forecasts and projections of economic conditions for Australia will be pivotal to understanding the likelihood of success for the Government's budget strategy.

It is always possible for the big picture to get lost in the minutiae of the Senate Estimates investigations. This year's Budget has a very big picture attached to it - a very definite economic strategy at its core. That strategy deserves and needs to be understood and critiqued.

The Federal Government have quite reasonably taken a decision to follow a policy path built on generating current activity within Australia to sustain and enable a future economic growth phase. That path will require a substantial accumulation of debt and therefore future risk. It is somewhat analogous to pushing all your chips onto Red for one last spin of the roulette wheel. Get it right and the Government will look like heros. Get it wrong and the chorus of voices crying "we told you so" will be deafening.

The Government's economic strategy is of course more layered than a flutter at a casino. The substantial investments in education in particular signal both a philosophical and hard nosed economic decision that identifies the future benefits to society and the economy that flow from a renewed and invigorated learning system for all Australians.

I'll have more to say about that in future blogs. For now I am preparing for the deluge of Senate Estimate Hansards that are coming my way and 'enjoying' hours of the forensic examination of program spending banter between Senators and Government Ministers that typically characterises Senate Estimates.

The devil, they say, is in the detail. I hope this year the devil has at least a vague sense of humour. I suspect we will all need that by June 5.

Simon Edwards, Head of Government Affairs

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