States to receive $14bn windfall

The Australian, Monday, April 19, 2010
Samantha Maiden

Summary:
Actually, the states has increased GST, which a third of GST revenue will be spent on health. Furthermore, $4 bn of health funding will be deliverd to NSW over the next 4 years and $ 3 bn to Victoria which will provide 60% of the cost of hospitals and 100% of primary care. In fact, the main reasons of additional resources from GST are because of the stimulus, the impact of stimulus on consumption, and the strong rise of Australian economy that have produced this additional revenues to the states of a 14 bn. In brief, the state government has to make the right decision, in which sectors and how much money to spend the budget more wisely.

Personal reflection:
It seems to me that the state government has to face the next difficult task to decide, whether it is fair or wise that a third of GST revenue will be spent to provide growth funding for the health reform plan. I am convinced that the government is able to make the right decision that most of taxpayers would be happy and able to have its benefits, e.g. better health services. However, the government should controll and double check the realising of this health reform plan to avoid other controversial problem or condition like overstimulus of school building costs recently.