Early Edition with Kate Hawkesby

That’s the real question we should be asking ourselves this morning. Remember, the Government’s running a deficit. A structural one. They spend more than they earn in taxes.  The up to $400 million in yesterday’s package comes from the operating allowance. New money.  The Government claims this is like a cheque account, but that’s disputed. The Taxpayer’s Union says given the fact the books are in the red, new spending is basically funded by borrowing. Therefore, it’s more like a credit card than a cheque account. We do have a Budget in May where cuts will come. But remember the forecasts for their tax break are also dependent on forecasts for growth, and growth is being hit by oil, too. That means they won’t earn as much as they thought they would. Add to that the fact borrowing costs are roughly 20% higher than they thought they would be back in December, and the spending starts to look a little shaky. $50 per family is not the real number we should be taking about this morning, the number we