Budget A House Of Cards Built On Rubbery Numbers

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11th May 2010, 11:20pm - Views: 724





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Institute of Public Affairs, Level 2, 410 Collins St. Melbourne



Institute of Public Affairs  |  Australia’s leading free market think tank




Tuesday, 11 May 2010



BUDGET A HOUSE OF CARDS BUILT ON RUBBERY NUMBERS



‘The Rudd government’s

third budget is a house of cards built on

a series of heroic

assumptions and ambitious projections’, John Roskam, Executive Director of the free market

think tank the Institute of Public Affairs said from the Federal Parliament this evening. 


‘These heroic assumptions include:


1.

world economic growth averaging 4.5% each year for the next two years 


2.

an increase in the terms of trade of 14% next year –

the highest increase in sixty

years


3.

an increase in business investment by 12.5% in the year after next


4.

exports to increase by 5% next year compared to a 1.5% increase this year’.


‘The Rudd government is hoping for a massive increase in business investment, while

slugging one of the core engines of Australia’s economic growth through a resources super

profits tax’, Mr Roskam said. 


‘Budget figures reveal that by 2013-14 federal government revenues will be 40% higher than

they are now’.


‘Under Kevin Rudd government is growing at Whitlamesque rate’.


‘And the Rudd government’s tobacco tax increases have been exposed as a tax grab, not a

health measure, with revenue to rise in each and every year of the forward estimates. Nanny

state taxes on alcohol and tobacco will approach ten billion dollars by next year’. 


‘The emissions trading scheme might be dead, but the government will still spend $30 million

over the next two years on a national campaign to push its political agenda on climate

change’. 


‘This budget isn’t a “no frills” budget. This is a “keep your fingers crossed” and “hope for the

best” budget’, Mr Roskam said. 




Media contact:


John Roskam


Executive Director

0415 475 673







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