The problem is, politicians much prefer spending over saving. Which is why a truly far-sighted government would put in place a more explicit mechanism to ensure some of the proceeds of the boom are banked in a sovereign wealth fund.
By setting aside some portion of mining boom revenues in the good times, such a fund may be used to ‘’stabilise” the macro-economy with spending during the bad times. The most exciting prospect would be the behavioural effect it could have on politicians……………………………………….Full Article: Source