State premiers say Federal Budget is a kick in the guts

By Mark Kenny, James Massola and Sean Nicholls
Updated May 15 2014 - 6:40am, first published 12:00am

AN $80 billion cut to federal grants for schools and hospitals over a decade has sparked a near-rebellion from states that suspect Canberra is trying to “starve them out”, forcing them to seek an increase to the 10 per cent goods and services tax.

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