The Federal government’s promise of a balance budget by 2017/18 is gone.

Chris Richardson, an economist with Deloitte Access Economics, says the budget deficits will be much larger than the mid-year forward estimates predicted.

Australia’s economy will struggle to balance its books because of the government’s inability to get key measures passed. Income tax revenue has had to be written down (again), spending on national security and military is up, and the Senate is demanding the government fund expensive policies in return for passing key budget legislation.

“This is an unwelcome combination of factors for a government hoping for budget repair,” said Mr Richardson.

The most egregious errors by the government have been the exorbitant price of cutting a deal with the Palmer United Party to abolish the mining tax. It came at the cost of postponing the abolition of the income support bonus, the low income superannuation contribution, and the schoolkids bonus. All money the government had factored into the costing estimates.

According to Mr Richardson security is expected to top$2.5 billion in 2014/15 and $2.9 billion in 2015/16.

The forecasts from Deloitte omit saving measures currently being debated in the Senate. This is because they have very little chance of ever being passed.

When the Greens to oppose a fuel tax policy (such as the fuel excise indexation) you know something is wrong with our political process.

And if something is wrong with the political process then the economy is sure to suffer.

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