How Treasurer Joe Hockey can reduce Australia's $667 billion debt This week business and economics stalwart Terry McCrann looks at the finer details of the Abbott government's budget forecast with a deficit for at least the next four years. Facing brutal cuts to make bring the budget back into the black ... Treasurer Joe Hockey addressing the National Press Club on the Midyear Economic and Fiscal Outlook in Canberra. Picture: Kym Smith Source: News Limited EVERYTHING but raising the GST is on the table as the Coalition aims to tame its $667 billion debt bomb. As Treasurer Joe Hockey launched a scathing attack on the previous Labor government for leaving a budget mess, a rollcall of potential and actual spending cuts emerged. Mr Hockey unveiled the Midyear Economic and Fiscal Outlook in Canberra which showed that if left unchecked Labor's spending and policies would have resulted in a debt bomb of $667 billion in 2022-23. He said it would not be politically easy but that hard decisions would need to be made in coming months about what programs and government spending needed to be reined in. "All options are on the table," Mr Hockey said while ruling out changes to the GST. "No government has ever achieved prosperity by simply raising taxes," he said. Among the speculated cuts on the government's hit list include a paring back of Labor's National Disability Insurance Scheme. The new deficit forecasts ... Treasurer Joe Hockey ponders the pre-election forecasts and today's reality. Finance Minister Mathias Cormann yesterday said the government was looking to make the scheme more efficient, flagging future potential cuts. "We want to make it more efficient," Senator Cormann said. We are having discussions about that. His comments follow those of Tony Abbott who said following a meeting of COAG last week that the spending on the NDIS could he modified. "We are all absolutely committed to the implementation of the NDIS ... but we have got to implement it in a way which is fair and a way which is sustainable," Mr Abbott said. The latest fiscal update shows budget deficits of more than $120 billion over the next four years. The Coalition's flagship $5.5 billion-a-year paid parental leave scheme could also never see the light of day with the program stated as "not been finalised" in yesterday's MYEFO. The scheme, which pays parents six months at their full salary, was one of Mr Abbott's signature policies going into the election campaign. However it has come under fierce criticism for being too generous. "The PPL is something that needs to be looked at to help find savings," Australian Chamber of Commerce and Industry chief Peter Anderson said. The axe fell on several programs yesterday with education and environmental schemes some of the biggest losers. A total of $998 million from Labor's Trade Training Centres and $450 million from after school care assistance was slashed. A community infrastructure program worth $528 million was also cut to help pay for an extra $1.2 billion for schools funding announced by Christopher Pyne earlier this month. "This is a lose, lose situation for school communities across Australia," Australian Education Union president Angelo Gavrielatos said. Vital national funding for trade training and before and after school care is being taken away so money can be given to the WA, NT and QLD governments that they don't even have to spend in education. A total of $4.3 billion in savings was flagged yesterday through the abolishment of businesses and energy market compensation programs which were given to medium and large businesses impacted by the carbon tax. In health, $265 million in hospital revamps was shelved. This included $100 million for the redevelopment of the Westmead Hospital in Sydney, $49 million for palliative care in Tasmania, $22 million for upgrades to St George Hospital in Sydney and $10m for the redevelopment of the Children's Medical Research Institute. A total of $111.4 million in cuts were been made to the Humanitarian Programme, providing health support to refugees and other humanitarian entrants and $43.1 million is set to be redirected from the Legal Policy Reform and Advocacy funding, mostly benefiting indigenous Australians.