Spending is forecast to grow across the board with few signs of real restraint.
Health spending is expected to grow by 3.0 per cent after adjusting for inflation. Given that the Commonwealth has cut health grants to the states in real terms, this amounts to a large increase in state spending. Outlays on education, police and welfare are also forecast to grow at rates far in excess of inflation and population growth. To finance this spending spree, the Government has once again raised taxes and charges. As a result of the higher stamp duties and vehicle licence fees announced in the budget, tax revenue is set to grow by nearly 7 per cent next year.