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2017 Budget- Labor’s debt increases

2017 Budget Fast Facts

Labor’s debt increases

 

Labor’s promises on debt

 (about the Coalition) – “…They then cheated and defrauded the Victorian public and went about in an effort to ensure that Victorians did not even get a say on whether or not it was delivered. They wanted to sign Victorians up to enormous levels of debt with no rights for Victorians to become involved.”

(Source: Pallas, Hansard, pg 4213, 10 November 2015,)

  • (in relation to Labor’s 2014 election costings) “…this is a serious piece of work, aimed at ensuring four things; we will retain the AAA stable credit rating, our election commitments will not lead to an increase in debt.” (Source: Tim Pallas, 774ABC Drive, 27 November 2014)

 

  • Labor has promised to retain Victoria’s AAA credit rating, to allocate $3.8bn on capital spending and to deliver no net increase in debt with no new taxes or increases in taxes.

 

(Source: “’Conservative’ costings anger Coalition”, The Australian, November 28, 2014)

 

  • Shadow Treasurer Tim Pallas promised there would be no impact on the budget surplus predictions, no increase in net debt, no increase in taxes and no impact on Victoria’s coveted AAA credit rating.

 

(Source: “Financial credibility Kennett axe wielder signs off figures; Labor neutralises Coalition’s attacks”, The Age, 28 November 2014)

 

What Labor inherited from the Coalition

 This is how the books looked when the Coalition left office (from 2014 Pre-election Budget Update)

 

Don’t listen to Labor’s promises, look at their record

  • Today’s Budget reveals that debt to GSP is rising to levels higher than what Labor inherited when coming to office. In 2019-20 and 2020-21, debt-to-GSP will be 6 per cent, above what was inherited from the Coalition.
  • Net debt in dollar terms will be 21 per cent higher in 2017-18 than forecast in the 2014 Pre-Election Budget Update

 

Year 2015-16 actual 2016-17 revised 2017-18 budget 2018-19 estimate 2019-20 estimate 2020-21 estimate
Net debt to GSP (%) 6.0 4.6 5.8 (up 1.3%) 5.8 6.0 (higher than inherited from Coalition) 6.0 (higher than inherited from Coalition)
Net debt ($b) 22.3 18.1 23.8 (up 4.2b or 21%) 25.1 27.4 28.9

 

(Source: 2017-18 Budget, Budget Paper 2, table 1.1, page 22)

 

This is despite:

  • Daniel Andrews being the highest taxing Premier in Australia
  • Daniel Andrews being the highest taxing Premier in Victoria’s history
  • Daniel Andrews receiving a $10b windfall from the lease over the Port of Melbourne
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