Deficit of ideas

NOW is the time for a budget deficit, not a budget surplus.
Casey’s Draft Budget Plan for 2015/16 forecasts a budget surplus of more than $84 million.
This surplus is expected to rise to more than $1.5 billion in future budgets.
Recently Reserve Bank Governor Glenn Stevens said that public spending programs and deficits are now needed to lift our deflated economy.
Casey council now should look at a budget deficit, instead of a budget surplus because interest rates are now at a record low.
The south-eastern suburbs have a public housing crisis.
Casey council could invest in the construction of public housing.
State Government public housing has a long waiting list.
Private rental markets in the municipality of Casey may charge as much as the inner-suburban and city rental market which can be as high as or more than 50 per cent of the minimum wage.
Investment in public housing by Casey council would provide an income return on the investment and put downward pressure on high prices in the private rental market.
Increased public spending does, as the RBA governor suggests, have a multiplier effect on the local economy.
More spending on health and community services programs can only help productivity by reducing the costs of absenteeism and disease from diabetes and obesity.
The question is: are budget surpluses an end in themselves, something that sees the accumulation of capital as good for the sake of having a surplus.
Or should a budget be used for targeting social and economic problems in the wider community?
John Glazebrook,
Endeavour Hills.