Chris Pearce (Aston, Liberal Party, Shadow Minister for Financial Services, Superannuation and Corporate Law) Share this | Hansard source

I rise tonight to make some comments in relation to Appropriation Bill (No. 1) 2009-2010 and cognate bills that are before the parliament which of course encompass the budget for this year. The first area that I would like to go to is the area of deficit. It is interesting to look at this budget and understand how this Labor government has actually plunged our country into such horrific deficit and debt. It is incredible that we are even talking about a deficit, because just 18 months ago, when Kevin Rudd became Prime Minister of Australia, this nation was in a very healthy surplus position. Now, of course, we find ourselves in a difficult deficit situation, with a huge debt added.

When you look at the budget, you see the deficits projected. We have a $42 billion deficit projected for this year. That alone is a $50 billion turnaround in one year. We have a $58 billion deficit projected for 2009-10; a $57 billion deficit, for 2010-11; a $45 billion deficit, for 2011-12; and a $28 billion deficit, for 2012-13. All of those add up to a massive $220 billion deficit from this budget. On top of that—as if that is not already enough—what it represents is the fact that this government will end up being the biggest spending government since World War II. This government will actually end up being the biggest spending government that Australians have seen since World War II.

According to the budget, the government will reach a spending level of 29 per cent of GDP. That is alarming in itself. Even more alarming, it is my onerous duty to inform the parliament tonight, is the fact that at 29 per cent of GDP that will make this government’s spending worse that that of the Keating government, if you can believe that. But, more worryingly, it will make their spending even worse than that of the Whitlam government.

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