Government’s chief financial expert provides a forewarning that having this guaranteed budget surplus over the next fiscal year will probably be “very, very tough”.
Treasury secretary Martin Parkinson claims the European recession will definitely hit Australia’s base line, and tax receipts will be affected.
The Opposition has, declaring Dr Parkinson is installing the surface for the fresh set of tax hikes.
Parkinson released the caution after a talk for the Sydney Institute recently.
“What we’ve got is much, much greater uncertainty about revenue numbers,” he stated.
“Even on the forecasts that we have, it is very, very hard to get back to surplus and then to build the surpluses over time.”
He explained Europe “will almost certainly” get into recession the coming year.
“The only issue is how deep it is and how long it is. And our assessment is, that at the moment, if everything went well, it could be a shallow recession; if everything does not go well it could be long, deep and very drawn out.”
Treasurer Wayne Swan has prepared a new come back in order to surplus within 2012-13 the central plank regarding his economic plan.
However shadow Treasurer Joe Hockey states Dr Parkinson’s feedback imply tax hikes may be required in order to raise Australia’s finances out of the red.
“I am concerned that Dr Parkinson’s speech is a way of preparing the ground for even more taxes,” Mr. Hockey informed everyone.
“Of course, this Government has introduced or increased 19 taxes, and yet they’re still crying about the lack of revenue, and this is a concern.”
Though admitting Dr Parkinson didn’t mention of any sort of brand new taxation, Mr. Hockey explained the treasury secretary did refer to the issue regarding providing the surplus.
“Now quite obviously the Government continues to spend money on things like the National Broadband Network, which is blowing out in costs; green funds, which is $10 billion off budget. And of course all of this in the background that they’re introducing taxes likes the carbon tax, the mining tax, and the flood levy.”
Throughout that talk, Dr Parkinson explained the Government definitely ought to peg spending beneath pre-GFC levels to maintain the budget within the black.
Yet Mr. Hockey claims that instead of reining in expenditure, the government could be spending – and borrowing – much more.
“The Coalition is concerned that the Government keeps coming back to the Parliament to increase their own credit card limit, which is now approaching $250 billion. And in doing so it is leaving us further exposed to the problems in Europe.”