Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the shadow Treasurer for that question because it is a very important question. It is true that the government has a modest borrowing program. Those opposite have decided to go around the country and run a scare campaign about that as well.

The truth of the matter is we do have a modest borrowing program and net debt is 9.6 per cent of GDP in 2011-12. Let us get things into perspective because that is about one-tenth of debt elsewhere across other major developed economies, so very modest. This is why the major rating agencies have given us our AAA gold plated rating. Our credit worthiness is very high. It is the highest rating they can give. This country, led by this government, has been given that by the rating agencies for the first time in our history. It certainly was not given to this country when those opposite were in government. Net debt at about 9.6 per cent of GDP is like someone earning $100,000 a year and owing a modest $9,600 a year. Net interest payments in 2012-13 will be 0.5 per cent of GDP and that is like someone earning $100,000 a year and paying only $500 in interest. This just puts our debt into perspective. What we have here is an irresponsible scare campaign—

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