Treasurer Wayne Swan Says Budget is Tough
Federal Treasurer Wayne Swan says that his budget is not tough enough. This is in reply to criticisms about his fourth budget.
He said that “there are $22 billion worth savings in this budget and many of those are structural saves that will impact for not just four years but for 40 years. My reading of most of the economists is that they recognize that this is the fastest return to surplus that we’ve ever seen in our history.”
Swan was asked about the impact that the budget may have on interest rates. He answered by saying that the government has done its best in tightening fiscal policy.
Despite this, many economists believe that the budget can do nothing from preventing the Reserve Bank from lifting interest rates in these coming months. The Treasurer, on the other hand, believes that the budget is helpful to many struggling families. He also defended by saying that they are aware of all the cost-of-living pressures that surround Australians. The carbon tax, he added, has not yet been finalized so it was not included yet in the budget.
It can be noted that Opposition leader Tony Abbott commented that the exclusion of the carbon tax from the budget has left a hole in the heart of the budget. Mr. Swan simply says that the comment is rubbish. He said that there is no final design yet for the emissions trading scheme and so it cannot be put just as yet in the budget.
The Treasurer says he hopes Australians will appreciate that the budget is beneficial as it will bring opportunities for the mining industry and create jobs for more people.
According to Prime Minister Julia Gillard, the budget will only cut $5 billion from the bottom line. It has been warned for already a long time by the government that the budget would be tough but will be focused on getting more jobs.
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Source : http://afr.com/p/national/politics/budget_tough_enough_say_swan_gillard_mXB8VOhh2gzuQhHTbq3blO
