The treasurer, Jim Chalmers, has declared next week’s budget neither the time for “scorched-earth austerity” nor for unrestrained spending as he hints again at a possible second consecutive surplus.
“The budget is in much better nick than the budget that we inherited almost precisely two years ago,” Chalmers said on Monday.
A week out from the government’s third budget, Chalmers and the finance minister, Katy Gallagher, insist it will contain more cost-of-living relief. But they are also trying to keep expectations in check, describing the already-announced tax cuts as the centrepiece.
“This is not the time for scorched-earth austerity,” Chalmers said on Monday. “It would not be wise when people are doing it tough and when the economy is soft for us to slash and burn in this budget.”
But equally, it would not be “some kind of free-for-all of spending”.
“We are charting a responsible middle path,” he said.
Australia rises to second in world budget management rankings, IMF data showsRead more
Chalmers suggested a second consecutive surplus was “in reach”.
“And if we achieve it, this will be – or this would be – the first back-to-back surplus in almost two decades,” he said.
The two ministers flagged what they called essential extra spending in areas they argue the previous government neglected. “Some extra spending is unavoidable, some of it is automatic, some of it is desirable, all of it is warranted,” Chalmers said.
Chalmers also warned that not all of the figures in next Tuesday’s budget papers would be rosy and some would be well in the red, compared with those in December’s mid-year economic and fiscal outlook (MYEFO). “Some of the deficits in the budget will be a little bigger than they were at MYEFO, some of them will be a little better,” he said.
Gallagher pointed to what she called “unavoidable spending” to scaffold important programs she said had been underfunded in the past. She listed IT upgrades – including measures to sustain the MyGov government online portal – and extra staff for Services Australia to help clear the backlog of claims, especially in Veterans’ Affairs.
“There’s a range of programs in Health through palliative care, cancer programs, public health chronic conditions funding,” she said. “Again, responsible, reasonable, needed investments … that didn’t have ongoing funding.”
skip past newsletter promotion
after newsletter promotion
Also in that category was the “Leaving Violence” payment announced last week as the continuation of a pilot program introduced under the Morrison government. Gallagher said the previous government had not funded it beyond its initial two-year trial.
Labor to wipe $3bn from Hecs and Help debts through indexation changesRead more
She also said some spending in other areas would be cut. “You will see savings in this budget,” Gallagher said. “They are getting harder to find – I don’t pretend otherwise. You know,…
2024-05-06 02:35:13
Source from www.theguardian.com