More news on the economy

From The Oz today, Tony Abbott eyes $5bn for new road funding:

ROAD funding will surge again in the federal budget in May as the Abbott government casts an “eager eye” on new projects to lift faltering economic growth.

The budget plans include billions of dollars to upgrade old road and rail infrastructure in outer suburbs, on top of the Coalition’s existing $35.5 billion list of public works.

The new spending will come with tough conditions on the states to hasten construction after a federal audit revealed $3bn in cash sitting idle in state coffers.

I guess with the state of economic theory being what it is, the worst that the ALP can say is this:

The Coalition agenda is being criticised by Labor infrastructure spokesman Anthony Albanese on the ground it ignores public transport projects such as urban rail.

Meanwhile:

Investment spending will dive from $167bn this year to $125bn next year, according to figures released on Thursday by the Australian Bureau of Statistics, adding to the case within the government for outlays on public works.

If these are projects that can show a net positive return, then there is a case to be made. Otherwise it’s just more waste.

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