The Abbott government takes seriously any threat to its triple-A rating but is the only party looking at reducing spending, Parliamentary Secretary to the Treasurer Kelly O'Dwyer says.
Less than two weeks out from Treasurer Joe Hockey handing down his second budget, US investment bank Goldman Sachs has become the latest financial institution to warn Australia that it risks losing the triple-A credit rating due to its poor fiscal performance.
"The government takes very seriously any risk to our triple-A credit rating," Ms O'Dwyer told Sky News.
"We are the only party that is looking at reducing spending ... in order to get our fiscal situation back under control."
She said most of the savings the government wanted to make in last year's budget are still held up in the Senate by the Labor party, totalling $30 billion.
The Goldman Sachs research note says ratings agency Standard & Poor's could give Australia a "negative outlook" within months, signalling the first step to a possible downgrade.
Australia is one of few nations to have a triple-A rating from the world's leading ratings agencies - S&P, Moody's Investors Service and Fitch Ratings.
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