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For budgets only smaller is tougher

By Mikayla Novak - posted Tuesday, 10 May 2011


(d) in the case of other core commonwealth functions, such as defence, where greater spending efficiencies are not only identified but implemented at the earliest possible opportunity.

The application of these principles, some of which were contained in the 1996 National Commission of Audit report, should not only restore sustainable Australian public finances but deliver wider benefits such as fostering the growth of efficient markets and the revival of a strong civil society.

As an added benefit the government would not have to resort to punitive new taxes on carbon dioxide or mining activities to plug the existing fiscal gap but at the expense of our international competitiveness.

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Only time will tell if the 2011 - 12 Budget contains such a plan to turn the crisis of a self - induced multi - year deficit into an opportunity for a significantly smaller public sector in the public interest.

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About the Author

Mikayla Novak is a Research Fellow with the Institute of Public Affairs. She has previously worked for Commonwealth and State public sector agencies, including the Commonwealth Treasury and Productivity Commission. Mikayla was also previously advisor to the Queensland Chamber of Commerce and Industry. Her opinion pieces have been published in The Australian, Australian Financial Review, The Age, and The Courier-Mail, on issues ranging from state public finances to social services reform.

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