Publications
Budget a house of cards built on rubbery numbers
MEDIA RELEASE
‘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.