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A different budget analysis framework

by Eva Cox last modified May 11, 2011 07:04 AM
This analysis assumes the function of government budget is to make wise decisions on behalf of the people. While we might argue about what defines wisdom, there needs to be a commitment to equity and ethics to create the social cohesion that makes democracies resilient. Trust of Government involves members Representing wide political needs and diverse viewpoints. Adequate good will towards the less politically powerful is core to a reasonable balance between interest groups. The framing of the budget should therefore prioritise social goals and use economic means to fund these.

Therefore WETTANK has assessed the main promises and cuts on offer on three criteria that we think need to be balanced. These are fairness based: the first is redistribution to the less powerful, the second is increasing resources equitably and the third whether the funding adds aims for social cohesion or is targeted to populist/media adding to outgroup reinforcement.    

For each cut and promise, the following grid shows a mark out of ten for whether it is fair to the less advantaged or increases inequity, creates economic gains for common good or only for the better off, and whether it reinforces ethical social solidarity or is primarily for political spin.

Five is a pass mark and indicates the item does no damage but also does not add social value. Below 5 is a failure and the lower the mark the more likely it is that the results of the cut or spending will damage the social fabric. So any item which scores a total of ess than 15 for  suggests a poor outcome for wider communal well being.

Social equity is a core value from both a feminist and social democratic viewpoint for any Government that claims Labor credibility. Human society contains interdependent people in communities that are increasingly mobile and diverse. The recent emphasis on both economic goals and market means of the distribution of resources has pushed the social policies that affect social relating off the political agenda. The emphasis on individual self sufficiency has increased tensions and excluded those who fail market models, The main ‘reforms’ on offer are coercive participation to further ‘improve’ the supply side but not looking at employer prejudices that limit opportunities.

Most socio cultural needs and connections are left off the political and policy agendas.   Care responsiblities, interdependency, interpersonal obligations, and unequal opportunities limit life chances for children and adults because of institutional inequities. Individuals who are told it’s their own risks and fault if they fail, may increase GDP by taking any job but at serious social costs.  Anxieties, coupled with self interest, moral panics and scapegoats, add to social damage and tensions. Together with gross inequities in tax and welfare, these social stressors undermine social trust, cohesion and capacity to deal with challenges and change.

The result is the many current stalemates on many political and environmental issues which show voters have little trust in government integrity. Therefore this evalution is important for assessing the social benefits and damage of the 2011 budget. Particular measures relating to women are included and starred.

 Budget item  detail

Social

fairness

Econ. 

benefits  

Cohesion versus

spin factor

Total

Comment on item score

*teenage mums

3

3

1

8

Support is more important than punishing those trying to rear kids

Kids disabled extra

8

8

8

24

Good but limited

Payment  to POW

7

5

8

20

A bit late!

Advance LITO

6

5

5

16

Timing shift only

deduct vehicle cost

2

3

4

10

No reason and bad for environmental health

Teen FTBA rise

7

5

6

19

Replaces YA , why lower level

Set top boxes for pensioners

8

5

5

22

Dubious value for money and condescending

Teacher bonuses

2

3

1

6

No good according to overseas experience  

Appren xtra $1700

6

7

4

17

More may complete

230,000 LT u/e wfd

2

4

3

9

More stick than carrot

2.2 Mental health

8

6

7

21

Good move but involves cuts in other health services?

Work for dole

5

4

1

10

Plays stereotypes and the job market is an issue

*IM for some areas

2

2

1

5

Doesn’t work

*Xtra earnings sole parents Newstart

7

6

5

18

Restoring an earlier mistake

*Sole Parents 12yr  kids to Newstart

2

2

1

5

Cuts wkly income by $57 and more pressure

Cut $ young jobless

2

2

2

6

Line up with new FBTA

8 hr work push for DSP under 35 yrs

4

4

4

12

Help good but not if the pressure is bad

10,000 job subsid long term unempd

7

7

7

21

Too few and too low to cover 230,000 possibles

And the Cuts:

 Budget item  detail

Social

fairness

Econ. 

benefits  

Cohesion  

spin factor

Total

Comment on item score

FBT 4 company cars

5

8

5

18

Cut more

1000 civilian jobs def

5

5

5

15

 

Efficiency dividend

3

4

3

10

 

Charities’ commerce

7

8

7

24

Good start

Chronic dental disease

3

5

4

12

Leaves gap

Cut youth allow to FBTA

3

4

4

11

Sneaked in

Defer tax discount

8

8

4

 

Shd cut out

Halving HECS

7

7

5

19

Will upset some

*No index  FTB AB

5

5

6

16

Means tighter high inc

*No index sup FTB B

2

2

2

6

Low income loss

* cut women’s program to fund EOWA

3

3

3

9

Bad to cross cut needed funds

 

 

 

 

 

 

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