Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Troeth for that question. The government is working responsibly on the budget deficit. Let me be clear. When it comes to this issue, there are a number of private sector endorsements of the budget and the budget stimulus package—which goes to the heart of the question of what the appropriate size of the deficit is. Dr David de Garis, the senior economist at nabCapital, stated that it is ‘a sizeable fiscal stimulus and, I think, appropriate in the circumstances both in terms of the size of the stimulus and also its construction’. ANZ Economics said, ‘The moves have been decisive and pre-emptive, thus giving policy the best chance of minimising the damage to employment.’ Let us be clear about this. There is endorsement across the country of this package. The deficit for 2008-09 will be $22.5 billion—that is, 1.9 per cent of GDP. The government’s fiscal strategy aims to ensure fiscal sustainability. When you look at what is happening around the world, most major industrial countries will have deficits in 2009.

Those opposite, who are seeking to pin their hopes on avoiding a deficit or reducing a deficit, should understand exactly the state of the world economy. The US deficit will surge to 9.5 per cent of GDP in 2009. That is a $1.2 trillion deficit, and that is inclusive of President Obama’s fiscal stimulus. The European Commission projects the UK’s deficit will rise four percentage points, to 8.8 per cent of GDP. In Japan the deficit is forecast— (Time expired)