Federal Member for Wannon Dan Tehan has criticised the Albanese Government’s continued spending spree, after Treasurer Jim Chalmers handed down another Budget deficit of $22 billion.
The deficit is more than double the deficit handed down the year before, despite Australians paying higher taxes.
Mr Tehan said Labor was failing to use the additional revenue to repair the Budget, instead continuing to increase spending at a rate that was putting further pressure on the economy.
“Labor has been handed a massive revenue windfall and still can’t get its spending under control,” Mr Tehan said.
“Labor’s fiscal record is more tax, more spending and more debt.
“After all that additional revenue, Australians are still being left with deficits as far as the eye can see, while future generations will be left to pay the bill.
“Labor’s spending grew by 4.3 per cent in real terms, nearly twice the rate of economic growth at 2.4 per cent.
“That has pushed spending to 26.9 per cent of GDP – the highest share of the economy since 1986-87 outside the pandemic.
“The Government had an opportunity to use higher tax receipts to repair the Budget. Instead, it has squandered that revenue on a spending spree and still has no plan to pay down Labor’s trillion-dollar debt.
“You can’t tax your way to prosperity, and you can’t spend your way to productivity. Labor needs to get spending under control and focus on growing the economy, not growing government.
“Treasurer Jim Chalmers claims a $230 billion improvement in the Budget, but he fails to mention he received an additional $382 billion in tax receipts.
“He also failed to mention that tobacco excise came in a further $200 million below what was forecast in this year’s Budget,” said Mr Tehan.
Deputy Leader of the Opposition, Jane Hume, said the Government’s approach was leaving Australians to carry the burden of higher spending and debt.
“This is Labor’s fiscal record: more tax, more spending, more debt. After all that revenue, Australians are still being left deficits as far as the eye can see and future generations will be left to pay that bill.”
Shadow Treasurer, Tim Wilson, said the Government’s ongoing deficits showed it had failed to get spending under control.
“The Treasurer has forecast debt and deficits for decades because he can’t kick his spending addiction, and even when he gets a windfall he could use to restructure, he just keeps fuelling inflation and higher interest rates,” the Shadow Treasurer said.
“Labor’s model of budgeting is to take from the kitchen tables of the nation to plug their Budget holes, leaving less to spend at the supermarket.
“This announcement is a desperate attempt to distract Australians from the prospect of three more interest rate rises thanks to Jim Chalmers’ addiction to spending and inflation, rises that will push many families and small businesses over the edge.”
Mr Tehan said the Government needed to take responsibility for its spending and the growing Budget deficit.
“Jim Chalmers and Minister for Finance Katy Gallagher have turned crisis-level spending into business as usual,” Mr Tehan said.
“While the Treasurer likes to compare the Budget to previous expectations, Australians are dealing with the reality of higher taxes, higher spending and growing debt.
“Labor needs to get spending under control and focus on building a stronger economy.”
ENDS
Media contact: Sandie Gustus M | 0408 564 232 E | sandie.gustus@aph.gov.au