This article:
Big tax blow to Labor’s surplus hopes
The federal government’s hopes of delivering a surplus this financial year have been dealt a hefty blow by the slowing world economy, with tax receipts in October $3.9 billion weaker than forecast in the budget.
A week ago or so Gillard seemed to be back-pedalling on the government’s commitment to record a budget surplus this year. Over the weekend a government minister seemed to say, no, the commitment was still in place (I posted the article over the weekend, link ). So, there is question over the commitment.
If you’re short AUD its a risk that there a softening in that promise could see the AUD trade higher.
The market is talking about the pledge being dumped – as soon as the Swan press conference in 15 minutes perhaps.