Federal Budgets usually make a bit of noise – receive broad commentary and analysis and sort of fade…………
Not so Budget 2014. It has received quite polarised and broad commentary, some of which seems to me to be at a highly accelerated level of excitement.
Budget Tuesday – Protests in the street Saturday! What on earth is going on? Possibly one of the most balanced commentaries has come from Chris Richardson (Deloitte Access Economics). His Australian Financial Review headline on 15th April, “Sensible Economics Meets Diabolical Politics” says everything.
We certainly need reform and spending cuts will usually come from sectors perceived to have received more than their current entitlement. This may not be universally popular.
The Budget is unlikely to change the fortune of business directly but if the hysteria the press and media continues to fan, drops consumer confidence, then collateral damage is a real possibility.
Moving away from an “Age of Entitlement” applies as much to business as it does to welfare. Businesses that have a deliverable plan
supported by an absolute dedication to quality performance, will emerge from the next couple of years in really great shape.
That is a predictable outcome from our perspective.