Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Hansard source

This government has made its fiscal rules very clear—that is, we will limit real spending growth to two per cent. I know the honourable member says that that is easy, but I would disagree because I have had a look at the spending decisions made under the Howard government, and real spending growth exceeded two per cent for, I think, almost every year of the last 10 years of the Howard government. So I do not think it is necessarily easy to limit real spending growth to two per cent, but that is what we have committed to do and that is what we are doing in this budget. We have also committed to, if you like, banking increases in tax revenue to draw down the deficit. That is why we are able to budget for a surplus three years ahead of time and before any other major advanced economy. It is because we have those very clear fiscal rules in place, and the savings delivered under this budget are greater than the increased expenditure contained therein. For that reason, we are making a contribution to reducing the budget deficit and moving into surplus. We have made those fiscal rules very clear, and I think the honourable member is aware of that. He is also aware that we have met those fiscal rules.

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