Budget Balance a Testament to Coalition's Economic Management
Joint media release with The Hon Angus Taylor MP Shadow Treasurer
Senator Susan McDonald Shadow Minister for Resources
5 December 2022
New independent economic analysis demonstrates the strong fiscal position the Coalition left the budget in and vindicates the Coalition’s economic management through the COVID pandemic.
The analysis conducted by respected budget economist Chris Richardson shows the budget is in balance for the year of 2022 and that debt is half of what the Labor Party says it is.
Shadow Treasurer Angus Taylor says the analysis also shows net interest costs of servicing government debt will fall to its lowest level as a share of national income in a decade.
“With little of the Albanese Government’s budget coming into effect until next year, this analysis is yet another reflection on the strength of the economy and the budget that Labor has inherited,” Mr Taylor said.
“It is critical Labor end the spin and start doing the work to preserve the strong budget position the Coalition has left it.
“As Australian home owners cut back spending over Christmas, the Government must quit the excuses and start to lead by example. Now is not the time for new taxes but for responsible spending restraint. Anything else will just put more pressure on the Reserve Bank to raise interest rates even higher.”
Shadow Minister for Finance Jane Hume said Jim Chalmers' failure to rein in spending, with $115 billion of additional spending in the budget, is adding to inflation and increasing the cost of living.
“It’s time for the Albanese Government to use fiscal policy to put downward pressure on inflation, and to stop relying on the RBA to do all the heavy lifting,” Senator Hume said.
“This new analysis confirms that Labor has been left with a strong budget position by the Coalition.
“It is critical that Labor protects this position by coming up with an economic plan to address the cost of living crisis.”
Shadow Minister for Resources Susan McDonald said the role of commodity prices on receipts showed the government must tread carefully with interventions in the sector.
“With commodity prices driving a large part of this resurgence, it is critical the government does not intervene in our resources industry in a way that reduces investment or undermines national prosperity,” Senator McDonald said.