Liberal Democrats Senator David Leyonhjelm congratulates the Federal Treasurer on this year’s 10th budget deficit in a row, and wishes him many happy returns for next year’s 11th.
“This deficit is a truly astounding example of fiscal profligacy,” Senator Leyonhjelm said.
“The Liberal Democrats won’t be holding their breath for the miniscule $2 billion surplus we’ve been told to look forward to in 2019-2020. The level of spending delivered in this budget is, quite frankly, unforgiveable.”
The Government has made decisions to increase net spending by $1.6 billion this year.
“Our debt is massive and the expected budget surplus further down the track is negligible,” Senator Leyonhjelm said.
“Real spending per person is already at a record high and will rise again next year.
“The Government has made decisions that reduce net spending for the coming four years by $0.4 billion, but this conveniently leaves out the decisions that increase net spending by $1.6 billion this year.
“And it relies entirely on decisions that reduce net spending by $2.3b in 2021-22 – the never never.”
Senator Leyonhjelm said despite the personal tax cuts announced in the budget, real per capita personal income tax collections are still set to grow considerably.
“The Government’s Personal Income Tax Plan reduces tax by $13.4 billion over the coming four years, but revenue expectations have gone up by $31.5 billion over same time,” he said.
“So the Government is returning less than half of that revenue windfall.”