Federal budget deficits would widen by $7.9 billion over the next two years before improving sharply in the final years of the decade under the Coalition’s federal election plans.
Costings released on Thursday afternoon show the Coalition expects to improve the budget bottom line by $13.9 billion over the next four years.
Shadow treasurer Angus Taylor and Coalition finance spokeswoman Jane Hume.Credit: Alex Ellinghausen
But in the coming year, the deficit – forecast in March to be $42.1 billion – would grow by a forecast $5.6 billion to $47.7 billion. In 2026-27, the deficit would be $2.3 billion worse than the March forecast.
The Coalition is expecting a major turnaround in 2027-28 with an improvement of $9.5 billion (on a forecast deficit of $37.2 billion) and then a $12.2 billion strengthening in 2028-29.
It estimates total gross government debt will be $40.8 billion lower over the next four years, but $3.4 billion worse in the coming financial year.
Angus Taylor says the Coalition costings would be a $14 billion bottom-line budget improvement over the forward estimates.
Taylor said on Thursday the costings also laid out a plan to radically improve the nation’s finances.
“What we’ve announced today, is a $14 billion bottom-line budget improvement over the forward estimates,” he said.
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“But on top of that, we’ve laid out a $40 billion improvement in the debt position over that same time.”
Finance spokeswoman Jane Hume argued that a Coalition government would restore responsible budget management by reducing government spending as a share of the economy.
“Under Labor, spending as a share of the economy has ballooned to a 40-year high. It is unsustainable, it is inflationary, and it threatens the next generation’s prosperity,” she said.
“We will cut waste, control expenditure growth and ensure that every dollar that is spent by government is focused on delivering essential services and strengthening our nation, not growing bureaucracy.”
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Hume flagged the already announced plan to cut 41,000 public servants would happen through a hiring freeze and natural attrition over the next five years, rather than voluntary redundancies as was put forward earlier in the Coalition’s campaign.
“[We are] bringing the APS back to a sustainable level while protecting the services delivery and national security positions. And we’ve identified other sensible saves to repair the budget as well,” she said.
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