Thursday, 11 May 2017
Questions without Notice
I refer the member to page 7-9 of the statement, which says:
The total face value of CGS—
Commonwealth government securities—
on issue is projected to rise to $725.0 billion by 2027-28.
The face value of CGS on issue is projected to rise to a within-year peak of around $649 billion in 2021, which is what I confirmed to the House yesterday. It is important to understand, on these figures, that from 2018-19 the Commonwealth will no longer be raising new debt to pay for things that are everyday expenditure, because from 2018-19 the net debt peaks and comes down. I confirm that the net debt at the end of that period is projected to fall to 8.5 per cent of GDP, or $255.8 billion.
When the Howard-Costello government paid back Labor's debt, they paid back the $96 billion in net debt. That was the debt that was paid back by the Howard-Costello government. It was the former Treasurer, the member from Lilley, who began the process of revving the debt up again. We have been able to get the debt that we have inherited, which was growing at three times the rate that it is now, under control.
Under the budget I announced on Tuesday night, the net debt will fall. It will fall to just 8.5 per cent of GDP.
Dr Chalmers interjecting—