Presenter Sam Armytage today mocked the Albanian government’s claims that it has curbed spending after a mid-year budget update revealed a ballooning deficit.
On Thursday morning, Armytage prefaced her interview with Finance Minister Katy Gallagher by calling the budget figures released on Wednesday “scary,” with the budget deficit having increased by almost $22 billion and the national debt expected to exceed $1 trillion.
In response, Senator Gallagher claimed that the government had found $92 billion in savings, Armytage interrupted with a skeptical laugh.
“You’re spending more, more than you expected,” Armytage said.
The fearless Senator Gallagher persevered.
“We found $92 billion in savings, we reduced the debt, we reduced the interest on that debt, we produced two surpluses,” she said.
“The budget is $200 billion better off than what we inherited, and that’s because of the decisions we’ve made, but yes, there’s more work to do, there’s always more work to do.”
Armytage previously wondered why spending had not been curtailed.
Today presenter Sam Armytage laughed at a federal minister’s claim that the Albanian government was making cuts
‘These figures are bleak. You say this is a balancing act, but expenses here have skyrocketed. Why didn’t you contain it?’ Armytage asked.
Senator Gallagher blamed automatic payments.
“I think one of the reasons why we’ve seen some of the slippage, as you say in your introduction, actually has to do with the payments that are automatic, so pensions, payments to veterans, the use of Medicare, the use of child care subsidies, she said. .
“These are important supports the government is providing to the Australian community to ensure people get the help they need.”
Armytage pointed out that the government had set aside $5.5 billion for a “war chest” for the elections.
“So will we see any more cost of living relief promised by the Treasurer ahead of the election because this is all Australians are talking about at the moment,” she asked.
Senator Gallagher did not want to be inspired by new measures, but listed actions the government had already taken, such as subsidizing energy bills, the phase 3 tax cuts, childcare subsidies and HEC benefits.
“We’re keeping an eye on what more we can do to ensure we can provide cost-of-living support for the Australian people, and we will continue to do that,” Senator Gallagher said.
Finance Minister Katy Gallagher (pictured right) emphasized that the Albanian government had curbed spending
In pushing further for cuts, Senator Gallagher would only say what the government would not want to touch.
“We will save wisely, we will not chop and burn,” she said.
“We’re not going to pretend that you can cut Medicare, child care subsidies or pensions as a way to better balance the budget, because people deserve and depend on those services.”
On Wednesday, Treasurer Jim Chalmers provided a semi-annual update on the federal budget.
The figures show that the budget outcome over the next four years is expected to be $21.8 billion worse off than previously forecast, the mid-year economic and budget outlook showed.
With spending rising due to issues such as an aging population and tax revenues falling due to sluggish economic growth, Australia is not expected to return to surplus until 2034/35.
Cherelle Murphy, chief economist at EY, warned that public finances have been in structural decline for some time, but nothing is being done to reverse this.
The deficit reductions are expected to add an additional $49 billion to government debt by 2027/2028, meaning more money will have to be spent on interest payments.
That meant less flexibility to solve the problems of the future, Ms. Murphy said.
“The government has failed to find a path to increasing the prosperity of the Australian people and working its way out of debt burden,” she said.
‘We need a plan to boost our productivity through major reforms – including, importantly, to our tax system, trade and education – or we will face higher taxes and cuts to essential services in the future. ‘