We have crap public services because the government simply does not have enough cash

I have commented before on how Australia is one of the lowest taxed countries in the developed world.  Here is more evidence, from my favourite reading material – The Economist magazine.  An excellent special report on the size of governments around the world is here - http://www.economist.com/node/18359920?story_id=18359920

This chart show total government spending as a %age of GDP.  Most of these figures are higher than total taxes as a %age of GDP.  The difference between the two is made up primarily by increased government borrowings.   The Economists’ heading is ‘It can’t go on’.  Which is partly true.  Increased government spending that is matched by taxes raised or for infrastructure borrowings that will increase productivity for repayment in the future is fine.  Increased government spending through borrowings for day to day expenses clearly cannot go on.

For reasons I don’t understand, The Economist rarely includes Australia’s data.  But these are the figures for Australia from the same source – The International Monetary Fund.

 

	1990	2000	2005	2009
Australia	30.0%	34.6%	33.9%	37.4%

To give these percentages some meaning, our government is currently spending A$120 Billion a year LESS than the average!  Wouldn’t that fix some of our problems, whether for renewable energy, improved public services or increased welfare.