Will Shakespear
mumbo magic
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- 2013
Treasurer Wayne Swan hints at further stimulus package
TREASURER Wayne Swan has hinted there will be a further stimulus package in the May federal Budget, despite collapsing revenue.
Addressing the Sydney Institute today, Mr Swan said the Budget would be the next step in the government's co-ordinated response to the global economic downturn.
"Our challenge will be to continue to stimulate the economy and continue to invest in the future, while working under the constraints imposed by collapsing revenue and the global recession," he said in his prepared speech.
He said the budget would aim to maintain demand, support jobs, provide secure and sustainable retirement incomes, and lay the "building blocks" of the post-crisis economy through economic infrastructure and education.
"It will add to the steps already taken to support demand, support jobs, support growth, and build the schools, roads and homes the nation needs," he said.
"The budget will be developed consistent with our clear plan to return it to surplus and reduce debt over time."
In an earlier interview with ABC Radio, Mr Swan would not speculate on whether the budget would include a stimulus package.
He reiterated his backing for Prime Minister Kevin Rudd's comments on Sunday that the worsening global recession would make it "virtually impossible" for Australia to sustain positive economic growth.
He said demand for Australia's exports was falling, as were global commodity prices, because of the global recession.
"The downturn has already wiped one-quarter from expected export earnings this year alone, with the possibility of further losses to come," he said.
"And with this global recession now expected to be even more severe than published in the last official forecasts, with a global tide that is continuously building in its intensity and ferocity, it will be virtually impossible for Australia to avoid a period of negative growth."
In last month's Updated Economic and Fiscal Outlook (UEFO), growth was forecast to rise just 0.75 per cent in 2009-10.
While not mentioning Australia specifically, the International Monetary Fund in a report last week said it now expected the world economy to contract by up to 1.0 per cent this year on average, the sharpest decline in global growth in the post-war era.
However, Mr Swan said that while Australia was being hit hard by the global recession, it was still faring better than almost all other developed nations.
Growth over 2008 was stronger than in any of the G7 economies, while the unemployment rate was lower than all but one, and the banking system was among the most stable of all advanced economies.
"Staying ahead of the game during this global recession will involve hard graft and pragmatic policy responses," he said.
"It will take all our efforts to ensure the effective operation of the financial system, support jobs, and build the critical economic infrastructure necessary for future productivity."
http://www.news.com.au/heraldsun/story/ ... 61,00.html
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TREASURER Wayne Swan has hinted there will be a further stimulus package in the May federal Budget, despite collapsing revenue.
Addressing the Sydney Institute today, Mr Swan said the Budget would be the next step in the government's co-ordinated response to the global economic downturn.
"Our challenge will be to continue to stimulate the economy and continue to invest in the future, while working under the constraints imposed by collapsing revenue and the global recession," he said in his prepared speech.
He said the budget would aim to maintain demand, support jobs, provide secure and sustainable retirement incomes, and lay the "building blocks" of the post-crisis economy through economic infrastructure and education.
"It will add to the steps already taken to support demand, support jobs, support growth, and build the schools, roads and homes the nation needs," he said.
"The budget will be developed consistent with our clear plan to return it to surplus and reduce debt over time."
In an earlier interview with ABC Radio, Mr Swan would not speculate on whether the budget would include a stimulus package.
He reiterated his backing for Prime Minister Kevin Rudd's comments on Sunday that the worsening global recession would make it "virtually impossible" for Australia to sustain positive economic growth.
He said demand for Australia's exports was falling, as were global commodity prices, because of the global recession.
"The downturn has already wiped one-quarter from expected export earnings this year alone, with the possibility of further losses to come," he said.
"And with this global recession now expected to be even more severe than published in the last official forecasts, with a global tide that is continuously building in its intensity and ferocity, it will be virtually impossible for Australia to avoid a period of negative growth."
In last month's Updated Economic and Fiscal Outlook (UEFO), growth was forecast to rise just 0.75 per cent in 2009-10.
While not mentioning Australia specifically, the International Monetary Fund in a report last week said it now expected the world economy to contract by up to 1.0 per cent this year on average, the sharpest decline in global growth in the post-war era.
However, Mr Swan said that while Australia was being hit hard by the global recession, it was still faring better than almost all other developed nations.
Growth over 2008 was stronger than in any of the G7 economies, while the unemployment rate was lower than all but one, and the banking system was among the most stable of all advanced economies.
"Staying ahead of the game during this global recession will involve hard graft and pragmatic policy responses," he said.
"It will take all our efforts to ensure the effective operation of the financial system, support jobs, and build the critical economic infrastructure necessary for future productivity."
http://www.news.com.au/heraldsun/story/ ... 61,00.html
---
