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BUDGET REMAINS ON TRACK FOR RECORD DEBT AND DEFICIT

January 29, 2021

SENATOR KATY GALLAGHER
SHADOW MINISTER FOR FINANCE
SHADOW MINISTER FOR THE PUBLIC SERVICE
SENATOR FOR THE AUSTRALIAN CAPITAL TERRITORY
 
BUDGET REMAINS ON TRACK FOR RECORD DEBT AND DEFICIT
 

The December 2020 Monthly Financial Statements released today confirm that the Morrison Government is on track to deliver one trillion dollars of debt without a jobs plan to deal with over two million Australians out of work or looking for more work. 
 
The December statements show the Budget is on track to report a record deficit of nearly $200 billion for 2020-21 with almost half a trillion dollars of cumulative deficits over the forward estimates.
 
Net debt has grown to $611 billion whilst gross debt is over $800 billion and remains on track to crash through the trillion dollar mark.
 
Despite these eye-watering debt and deficit figures, there are almost one million Australians currently unemployed, nearly 1.2 million Australians underemployed and over 1.4 million Australians and their families surviving on unemployment payments.
 
The International Monetary Fund’s latest Fiscal Monitor reports that Australia’s overall finances will deteriorate more than any other advanced economy in 2021 except for the United States.

With budget debt at record highs it is crucial that any government spending going forward must be of the highest quality.

After racking up a trillion dollars of debt, the Morrison Government should have more to show for it in terms of jobs and opportunities but instead they’ve wasted too much on rorts, executive bonuses and advertising.
 
The Morrison Government’s plans to cut wages, cut super and wind back consumer protections in the banking system risks weakening the recovery and will leave too many Australians behind.