Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Right now the Australian budget continues to be in deficit. We do have an improving trajectory over the forward estimates, and we are expected to get back into balance within five years. It is very important that we deliver on the return to balance as outlined in the budget, to ensure we protect our AAA credit rating. Our AAA credit rating helps to keep interest rates low for business and for consumers. It also helps us deal with any future economic shocks that we may face from time to time as a result of developments around the world beyond our control. And, furthermore, it is of course very important that spending on funding of important social services and other services provided by government is affordable and sustainable over the medium to long term and that we do not continue to fund our expenditure today based on borrowings from our children and grandchildren, based on borrowings from future generations. That is why today's significant step is an important step—