An alternative budget

More broadly, public service wages have risen faster than private sector wages since the end of the Howard era.  To restore relative wage rates, the wages of all Commonwealth Government employees should be cut by up to 2 per cent, which would reduce government spending by $15 per person.

Haircuts to industry interference

Tourism, mining, energy, manufacturing, construction and agricultural industries should all receive a haircut by shaving 20 per cent off their industry assistance, cutting government spending by $25 per person.

A similar haircut for university academics and other government researchers would cut government spending by around $20 per person. Philanthropic and business support is likely to increase in response, which would help fill the gap.

A 20 per cent haircut for the ABC, SBS, arts and sports funding, heritage and national parks would cut government spending by around $25 per person.  Taxpayers should not be expected to fund ‘the Weekly with Charlie Pickering’, the opera, or sporting events.

Suspending unnecessary spending

To round out the spending cuts, spending of $40 per person should be cut from the Commonwealth Government’s environmental initiatives.  The Abbott-era Direct Action Plan should be suspended until international commitments to reduce emissions become binding, and Abbott’s Green Army should be abandoned as a Commonwealth frolic into State government affairs.

Government spending of $25 per person should be cut by abolishing regional development spending, which is code for pork‑barrelling.

Spending of $130 per person could be cut by suspending foreign aid (except for short-term responses to natural disasters overseas, which often involve our military).  Governments do not need to be involved in foreign aid so long as individuals are able to make charitable contributions to overseas causes they consider worthy.  Government-funded foreign aid typically involves the poor in rich countries funding the rich in poor countries, or rich countries imposing first-world priorities on third-world countries. 

Haircuts for the States

Government spending of $140 per person should be cut by discontinuing Commonwealth spending on affordable housing, which is a state responsibility.  Similarly, government spending of $410 per person should be cut by discontinuing Commonwealth involvement in the provision of roads and railways.  Road making is an important function of government, but it is a state and local responsibility. Commonwealth involvement is motivated by vote-buying.  The State Governments have healthier budgets and balance sheets than the Commonwealth and can afford to fund roads.

Cutting government spending by $1,400 per person is not dramatic. In fact, it would be hard to distinguish the proposed spending levels from the status quo (see chart).  After making these cuts there would still be massive government spending.