Senate debates
Thursday, 19 September 2019
Questions without Notice
Economy
2:05 pm
Andrew Bragg (NSW, Liberal Party) | Link to this | Hansard source
My question is to the Minister for Finance, Senator Cormann. Can the minister provide an update to the Senate on the budget repair efforts of the government?
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
I thank Senator Bragg for that question. Indeed, we have kept the economy growing and created more jobs, despite the headwinds we've been facing, and we have controlled our expenditure growth. I'm pleased to report that that's why in 2018-19 our budget has returned to balance for the first time in 11 years. The underlying cash balance in the final budget outcome for 2018-19 is $13.8 billion better than estimated at the time of the budget.
Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source
You should be ashamed!
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
The $680 million deficit represents 0.0 per cent of gross domestic product. Keeping the economy growing, boosting employment growth and controlling expenditure growth have been the key features of our budget repair effort.
Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source
Are you proud of making people wait for wheelchairs?
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
Nominal GDP grew by 5.3 per cent, significantly higher than the 2018-19 budget forecast of 3¾ per cent. This is the third year in a row that the underlying cash balance in the final budget outcome is materially better than anticipated at the time of the budget. Over the past three years the final underlying cash balance outcome was $37 billion better than forecast at budget. Compare that to Labor's last three years in government, when the outcome was $70 billion worse than forecast at budget time. Furthermore, this is also the fifth year in a row—five out of five—that the employment growth outcome is better than forecast at budget time: 2.7 per cent employment growth last year followed by 2.6 per cent this year, well above the 1.5 per cent forecast at budget time—
Honourable senators interjecting—
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
and well above the 1.9 per cent long-term average. For the second year in a row we kept spending as a share of GDP below the long-run average of 24.7 per cent. Spending as a share of GDP was headed for 26½ per cent under Labor and rising and is now down to 24.6 per cent.
Scott Ryan (President) | Link to this | Hansard source
Order! Before I call Senator Bragg, despite Senator Cormann having a very loud voice, I was struggling to hear him. Senator Watt, I did call you to attention a number of times. While there is something about that particular seat that does amplify someone's voice from my experience, I would ask you to spend the next answer pondering silence for a while. On my right they should not be responding to disorderly interjections when I repeatedly call them to order. Senator Bragg.
2:07 pm
Andrew Bragg (NSW, Liberal Party) | Link to this | Hansard source
How does the final budget outcome for 2018-19 demonstrate that the government's economic and fiscal plans are working?
2:08 pm
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
What our final budget outcome shows is that our plan is working to create more jobs and is also working to ensure Australians can continue to receive the essential services Australians rely on.
Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source
Like wheelchairs!
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
For example, over the last financial year we have more than doubled government expenditure on the NDIS, increasing it from $4 billion in 2017-18 to $8.5 billion in 2018-19—more than doubled it. In fact, in 2018-19 an additional 150,000 Australians transitioned to the NDIS, taking the total number of participants to about 300,000 by the end of June 2019. We expect that around 500,000 Australians with a disability will benefit from the NDIS over the next five years. Importantly, as I say again, we more than doubled the expenditure on the NDIS in 2018— (Time expired)
2:09 pm
Andrew Bragg (NSW, Liberal Party) | Link to this | Hansard source
What are the key risks to job creation, economic growth and returning the budget to surplus?
Scott Ryan (President) | Link to this | Hansard source
On my right: I would encourage you not to respond to interjections. On my left: I am reminded this a forum for non-government parties. I'm not going to call questions or answers until I can hear them. Senator Cormann.
Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source
We continue to face global economic headwinds, and we continue to deal with the effects of the drought and the floods on our domestic economy. However, on the back of lower interest rates, lower taxes, higher investment in infrastructure, a more competitive exchange rate and a pickup in the resources sector, we will keep the economy growing, creating more jobs and generating more revenue for government to fund the essential services Australians rely on.
I should say that the other risk to our economy is none other than the shadow Treasurer, Dr Chalmers. He recklessly and irresponsibly continues to talk the economy down. His leader appears to be too weak to get him to do the right thing by Australia. Labor has not delivered a surplus since 1989. Senator Bragg was in kindergarten then, and Senator Chandler wasn't even born then! The Labor Party doesn't know how to manage the economy and doesn't know how to manage the budget.