Mr Swan says he is still facing difficult circumstances in putting together this year's budget.

He says the states are set to benefit from the recovery in GST revenue.

But Mr Swan says there has only been some improvement in company taxes.

"Those revenues have not recovered like GST revenues have recovered," he said.

"GST revenues are strong because consumption has been strong, because the fiscal stimulus underpinned confidence in the economy, but the accumulated losses of companies are going to be a very big drag on revenue growth into the future."

This is part two of a con job to the Australian public. This is not what it seems. True, the budget in May is likely to be tight. In fact, expect some taxes to be increased people! Its necessary. Our Federal government is virtually broke - but the continued excessive spending being undertaken by KRudd and Co. is creating some rather unique financial issues.

Fortunately, the Con Job doesn't have to play out as Kevin would like. It starts with the COAG meeting this coming Monday to thrash out the health "reform" debate. Don't be fooled by this either. Its not about reform, not for health at least.

The position KRudd has put the state leaders in is simply a precursor to taxation reform! It is! Think about it.

When G.S.T. was introduced into Australia, it was written into legislation that the revenues from this would go 100% to States. It allowed the Government to make radical changes to income taxation over the years, and develop a "future-fund" after paying off national debt. Its a financial windfall.

Kevin wants it. Kevin wants to get his hands on the G.S.T. revenues. He needs too, he doesn't have any money! Read the statements from Swan about the forthcoming budget! There is no magic money-spin for the upcoming election. Oh-dear!

So how does he and his regime solve this?

Change the way G.S.T. revenue is distributed. Change the legislation! Get the State leaders to think this is a good idea. Let the State leaders make the decision! Then Krudd and co. don't have to look like the bad guys!

"It was the Premiers that did it, not me! They wanted this!" - I can see it now. Can't you?

It will start with Health, either through COAG, or a referendum at the next election. If it gets through, it sets a very dangerous precedent. And, no doubt, the legislative changes that would be made will simply leave open the path for KRudd and co. to steal more, and more, and more of the G.S.T.

Don't let it happen!

You want health reform? Then focus on health! Not on taxation!

Sylvestor

Sinking feeling ... John Howard spent recklessly by boosting 'middle class welfare', says the Treasurer. / File.

• Labor pins deficit blame on John Howard
• 'Acted like mining boom would never end'
• $200 billion revenue shortfall

WAYNE Swan has promised help for the poor in a "very Labor" Budget tomorrow, but will also use the economic blueprint to demolish what he describes as John Howard's contentious system of middle-class welfare.

The Treasurer has also appealed to voters to accept that the global recession is so severe it has forced Labor to shift direction on key policies it took to the 2007 election campaign.

Two days before delivering his second Budget at a time of unprecedented global economic upheaval, Mr Swan yesterday told The Australian his efforts to deal with the recession-driven, $200 billion collapse in revenue had been complicated by a legacy of reckless spending by the previous government.

Well this is an interesting take on history Mr Swan. I didn't realise John Howard and the former coalition Government were responsible for the current economic situation in Australia.

Of course it has had nothing to do with the billions of dollars of surplus that this current Government has flounced about the country in what can only be described as Krazy-KRuddonomics...stimulating? No!

Give it up Swan! You will give Australian's a sad and sorry budget this year. Middle income earners, the stable work horses of this nation will be hit hardest, and few of the so-called election "promises" will be fulfilled.

Don't blame me! I didn't want this fiasco! Onya Kev!

Sylvestor
www.twitter.com/Sylvestor

TUESDAY'S Federal Budget will invest more than $25 billion in key road, rail and port projects, including a heavy rail freight corridor linking Melbourne and Brisbane, aimed at hauling the nation out of recession.

The biggest overhaul of national infrastructure since the end of World War II - shifting the Rudd Government's fiscal strategy from short-term stimulus to boosting long-term productivity - will be funded by a variety of sources, The Australian reports.

KRuddonomics is back! This time presenting a Swan Lake Budget! Let's hope we don't all drown...

...it seems that I will be foregoing a few more (substantial) dollars every fortnight to both the Federal and State governments to help fill in the pot-holes in the highways and freeways of the Eastern states...yet again. This annoys me!

Once again, it is without a doubt that the wealth and sustainability of Western Australia will heavily subsidise this government's mis-management of the countries finances.

And lets hike cigarette taxes to boot!

Thanks KRudd, I guess I can sit back and relax and feel good about the fact I did not vote him in! Yeh thanks everyone else...where's your economic conservative now???

Thank you to those suckers who will see their future slowly fade away into deficit oblivion...Kevin-o-seven...yeh yeh!

Sylvestor
www.twitter.com/Sylvestor