ID :
26697
Sun, 10/26/2008 - 19:55
Auther :
Shortlink :
http://m.oananews.org//node/26697
The shortlink copeid
Tanner confident of budget surplus
Finance Minister Lindsay Tanner says he is confident the budget will remain in "healthy surplus" despite taking a hit from the global financial crisis. Mr Tanner refused to be drawn on questions about whether Australia is likely to slide into recession as the weight of the financial crisis takes its toll on economic growth.
"I'm not going to make predictions about recession ...," he told Network Ten.
But, he said, that while it was clear the crisis would impact on Australia's
economic growth and the budget's bottom line - as would the $10.4 billion stimulus
package - it would remain in surplus.
"Clearly, the revised projections for growth will have some degree of impact on
that," he said.
"(But) we still expect the budget to be in healthy surplus and we would also be
aiming for a budget outcome for the following financial year of healthy surplus."
However, Mr Tanner also warned that the nature of the financial crisis meant it was
impossible to predict the outcome of the next budget.
"By the time we are making those calls, those choices, we'll be into March-April
next year and we've got no basis on which to know exactly what the world economy
will look like at that time.
"We can't predict where those forces internationally are going to take us in six,
12, 18 months' time."
Mr Tanner also rejected suggestions by former treasurer Peter Costello that the
government had been dishonest by claiming it had been preparing for an economic
crisis back in March.
Mr Costello said the lack of any mention in the budget papers of a need for a
stimulus package proved the government's claims were nothing more than spin.
"The budget was brought down on May 13, 2008, apparently after the government had
realised there was a need for an economic stimulus. But the budget made no mention
of any need for stimulus," Mr Costello said last week.
Mr Tanner said that when the government was putting together the budget, one of the
issues discussed was the risk of different economic circumstances as a result of the
global financial crisis.
"It was at a very delicate point for a period of several weeks in March-April, and
there was a clear risk of what has now been happening that that could have happened
at that point," he said.
"So, we certainly had in mind the possibility that a very strong surplus may be
needed to be called upon over the course of the financial year if things went bad
internationally."
"I'm not going to make predictions about recession ...," he told Network Ten.
But, he said, that while it was clear the crisis would impact on Australia's
economic growth and the budget's bottom line - as would the $10.4 billion stimulus
package - it would remain in surplus.
"Clearly, the revised projections for growth will have some degree of impact on
that," he said.
"(But) we still expect the budget to be in healthy surplus and we would also be
aiming for a budget outcome for the following financial year of healthy surplus."
However, Mr Tanner also warned that the nature of the financial crisis meant it was
impossible to predict the outcome of the next budget.
"By the time we are making those calls, those choices, we'll be into March-April
next year and we've got no basis on which to know exactly what the world economy
will look like at that time.
"We can't predict where those forces internationally are going to take us in six,
12, 18 months' time."
Mr Tanner also rejected suggestions by former treasurer Peter Costello that the
government had been dishonest by claiming it had been preparing for an economic
crisis back in March.
Mr Costello said the lack of any mention in the budget papers of a need for a
stimulus package proved the government's claims were nothing more than spin.
"The budget was brought down on May 13, 2008, apparently after the government had
realised there was a need for an economic stimulus. But the budget made no mention
of any need for stimulus," Mr Costello said last week.
Mr Tanner said that when the government was putting together the budget, one of the
issues discussed was the risk of different economic circumstances as a result of the
global financial crisis.
"It was at a very delicate point for a period of several weeks in March-April, and
there was a clear risk of what has now been happening that that could have happened
at that point," he said.
"So, we certainly had in mind the possibility that a very strong surplus may be
needed to be called upon over the course of the financial year if things went bad
internationally."
