As the 2013 federal budget looms, both the Labor government and the Opposition insist on the need to cut social spending. All the talk is about bringing the budget back into surplus as soon as possible and the cuts, they argue, will be needed to end the federal deficit.
Ministers in Julia Gillard’s government have warned of a huge shortfall in government revenue, estimated at $7.5 billion by treasurer Wayne Swan and $17 billion by finance minister Penny Wong.