Surplus would be great: Professor
MUCH of the Federal Budget analysis has focused on Treasurer Wayne Swan’s promise that his Government will achieve a surplus in just three years.
But what does that mean to the average person on the Northern Rivers?
According to Professor Ian Eddie, from Southern Cross University’s School of Commerce and Management, a surplus would be great news for everyone.
“Interest rates will stay reasonably stable, although they will still probably go up a few more points,” he said.
“However, they won’t reach the levels we have seen in the past.
“Jobs will be more secure and we’ll have better services in health and education.
“We will have access to better communications and better infrastructure.”
But Prof Eddie warned achieving a surplus relied on many external factors.
“We will be faced with a lot of inflationary pressures because we are going to move into a very high level of employment,” he said.
“We’re in a recovery phase at the moment, but we need to keep it sustainable.
“We can’t let the economy grow too quickly.
“The best strategy – which is what the Government is doing – is to not put us in a big deficit.
“If the economy continues to grow a surplus could even come quicker.”