That’s the burning question following Tuesday night’s federal budget. Hume MP Angus Taylor (pictured) says we can. That is, the nation can afford to give $13.4 billion in tax cuts over four years and still pay down almost $350bn in net debt in years to come. He says it’s possible if the government is frugal.

Tax breaks equal more investment, more jobs and a dividend for government, he maintains. Maybe so, but it’s not the whole story. It’s based on the assumption the economy will grow at a stronger rate than currently, enabling the budget to register a $2.2bn surplus by 2019/20 and to start paying off debt.

Still, former treasurer Peter Costello predicts it won’t happen in his lifetime. Budgets are all about forecasts but most don’t really look beyond the next election. The tax breaks are about driving a wedge and testing Labor’s mettle.

But with recent analysis suggesting the tax relief will cost more than $18bn a year and that high income earners will be the biggest winners, the Coalition may be on shaky ground. It’s shaping up as an interesting run-up to the next federal election.

Workers receiving $48,000 to $90,000 annually might welcome an extra $530 in their pockets next year. But with wages barely rising in the past few years, it’s not a huge windfall. In addition, living costs have increased, particularly for gas and electricity.

Granted, employment is on the rise, with a reported 7.5 per cent growth across Hume. But can we assume, as Mr Taylor asserts, that this jobs growth is “unsustainable,” and employers will in time pass on the spoils in the form of higher wages? That’s a big assumption, one that nobody is pinning their hopes on given recent history.

There is nothing specific in the budget for Goulburn but we accept that broader measures, such as the small business instant asset write-off, will further stimulate the economy. That means little for the average ‘battler,’ those who can hardly afford rent, let alone a home.

Goulburn could also have benefited from direct infrastructure spending given our growing importance on the Sydney to Canberra corridor and efforts to attract western Sydney businesses. 

The budget has been described as neutral for regional Australia. That’s a good summation. In the end, it might have been better to pay off debt.