Senator the Hon. Mathias Cormann
Minister for Finance
Hon. J.B. Hockey MP
Date: Friday, 27 September 2013
Today’s Final Budget Outcome confirms the deteriorating state of the Budget under six years of Labor.
The challenge for the next three years is to rebuild the public’s trust in the Government’s finances through prudent management of taxpayers’ money and careful and responsible governance.
When Labor delivered the 2012-13 Budget they promised it would be in surplus. The numbers released today are emphatic evidence of Labor's deception.
Instead of a promised surplus in 2012-13, Labor’s Budget bottom line for 2012-13 has blown out by over $20 billion.
The Final Budget Outcome also confirms:
- There has been no 'fall in revenue and receipts' as often asserted by Labor. Receipts for 2012-13 alone increased by 6.4%, or $21 billion over the previous year (2011-12).
- Labor has racked up nearly $200 billion of net debt over the period from 2007-08 to 2012-13 – with Labor’s 2013 Economic Statement forecasting net debt to rise even further.
- Net Financial Worth deteriorated by $298 billion over the period from 2007-08 to 2012‑13.
Virtually every single number Labor promised in the 2012-13 Budget has turned out to be wrong.
|Indicator||2012-13 Budget Promise||2012-13 Budget Outcome||Difference|
|Nominal GDP Growth for 2012-13||+5%||+2.5%||-2 ½ percentage points|
|Cash Surplus/Deficit for 2012-13||+$1.5 billion||-$18.8 billion||$20.4 billion deterioration|
|Net debt for 2012-13||$143.3 billion||$153.0 billion||$9.7 billion deterioration|
|Net interest payments for 2012-13||$7.0 billion||$8.3 billion||$1.3 billion deterioration|
Only a Coalition Government can be trusted to fix the budget mess left by Labor.
Labor had a habit of overpromising and under delivering when it comes to the Budget:
- In the 2011-12 Budget Labor promised a deficit of $22.6 billion for the Budget year, and ended up delivering a deficit of $43.4 billion.
- In the 2012-13 Budget Labor promised a surplus of $1.5 billion for the Budget year, and ended up delivering a deficit of $18.8 billion.
- In the 2013-14 Budget Labor promised a deficit of $18.0 billion for the Budget year, and the most recent figures show this deficit will exceed $30 billion.
An electronic version of the Final Budget Outcome 2012-13 can be found at Budget 2013-14.