Find your Local Liberal

See it and Read it First
  • Newspaper

  • Labor racks up $25.2 billion deficit in just three months

    01/11/10

    The latest government financial statement reveals a staggering budget deficit of $25.2 billion for the first three months of this financial year, casting enormous doubt over Labor’s promise to return the budget to surplus.

    Shadow Minister for Finance and Debt Reduction Andrew Robb said Labor’s spending continued at record levels and there were no signs that revenue was improving which made urgent the need for substantial fiscal tightening.

    “Labor must have the courage and discipline to quickly rein in its reckless spending and borrowing. The upcoming MYEFO (Mid Year Economic and Fiscal Outlook) must take the form of a mini-budget, not just a mere update of the numbers,” he said.

    “The September statement confirms that Labor’s reckless spending and borrowing is continuing unabated. Since July spending is $9.6 billion higher than it was during the same period last year. Despite this revenue was down $1.9 billion,” Mr Robb said.

    “The government is banking on improvements in revenue to bring the budget back to surplus, yet this statement shows no signs of the level of improvement that will be required and therefore spending must be cut.”

    “When compared to the final budget outcome of 2009-10, the statement confirms that net debt has jumped from $42.3 billion to $64.6 billion in just three months. What does this say about the budget forecast of $78.5 billion net debt for the full year, when we are almost two thirds the way there in the first quarter?”

    “The statement reveals that net debt has jumped to $64.6 billion in just three months. What does this say about the budget forecast of $78.5 billion net debt for the full year, when we are almost two thirds the way there in the first three months?”

    CommSec chief economist Craig James estimates that the underlying budget deficit in the year to September was a record $63.3 billion. “The main concern is that revenues are still trending sideways rather than showing signs of repair. Meanwhile, government spending is at record highs and showing no signs of stabilising,” he said.

    Mr Robb said this statement produced no evidence whatsoever that Labor was on track to return the budget to surplus in 2012-13.

    “Finance Minister Penny Wong is under enormous pressure to demonstrate that she has the capacity to quickly rein in Labor’s profligate spending, because as it stands all we have heard is talk and she looks to be out of her depth,” Mr Robb said.
Back To Top

Search News

GET INVOLVED

Tony Abbott

Tony Abbott

Leader of the Opposition

FIND YOUR ELECTORATE

NEWSLETTER SIGN-UP

Liberal logo

LIBERAL PARTY OF AUSTRALIA

Authorised by Brian Loughnane, Liberal Party of Australia, Cnr Blackall & Macquarie Streets, Barton ACT 2600
Bookmark | Print Page | Disclaimer | Privacy | Copyright | Contact