Expect six years of deficit: Swan

5 May 2009, 8:31 pm   -   Source: SBS
Share This

It has been revealed it will take until 2016 to pay off the government's deficit, after speculation there will be a $A70 billion budget deficit this year.

RELATED

Australians should brace for big budget deficits lasting several years, federal Treasurer Wayne Swan has warned.

Senior Government sources have told SBS that as the Budget stands now, the deficit is expected to last six years.

Treasury is understood to have advised the Government that with serious spending cuts the Budget could return to surplus by financial year 2015-16.

In the meantime, there's speculation that the deficit could hit $A70billion next year, compared with last year's forecast of a $A22 billion surplus.

Australians are going to have a massive amount of debt and deficit they're going to have to repay, opposition treasury spokesman Joe Hockeysaid.

Earlier today, Opposition Leader Malcolm Turnbull was asking when a long-running 'temporary deficit' becomes just a long-term deficit.

"There doesn't sound as though there's anything temporary about this deficit. And, in fact, I have very grave doubts - very, very grave doubts - whether Mr Swan or Mr Rudd will ever preside over a surplus budget," Mr Turnbull said. 

But Swan blamed the recession.

"We are absolutely determined to return our Budget to surplus over time once growth returns to trend. And, of course, that depends on the length of the global recession," the Treasurer said.

"The Government insists that Australia will return to surplus before most other developed countries.... pointing to a United States deficit of 13 point 6 per cent this year... and 9 point 8 per cent in Britain.

The full detail of Australia's budget position will be revealed next Tuesday.

 

 

 

 

 

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube