Senator the Hon. Mathias Cormann
Minister for Finance
Hon. J.B. Hockey
Date: Thursday, 1 May 2014
The National Commission of Audit report we release today shows that the spending trajectory we inherited from Labor is unsustainable and needs to be addressed.
After the last election we inherited $123 billion in projected deficits with Government debt heading for $667 billion, unless we take corrective action.
The National Commission of Audit report shows that without remedial action Labor's spending trajectory continues to deteriorate beyond the current forward estimates.
The Government can't keep spending more than it raises in revenue.
That is why we made a commitment before the last election to repair the Budget.
That is why we asked the National Commission of Audit to identify opportunities for structural reforms to help ensure Government can live within its means.
Specifically, the National Commission of Audit was asked to provide advice on how best to ensure Government spending is as efficient and as well targeted as possible.
The National Commission of Audit report is not a report by the Government but a report to the Government.
It is one important input to the Government’s considerations for the upcoming Budget.
While the Government will not be providing an immediate response to each recommendation, our response to the National Commission of Audit report will be our first Budget on 13 May.
In the Budget, the Government will pursue structural savings, which will build over time and help put Australia onto a believable path back to surplus.
We will continue to review and consider the recommendations and advice as we continue to pursue the necessary structural reforms of the Budget and Government spending programs.
Our efforts to repair the Budget are a critical part of our Economic Action Strategy to build a stronger more prosperous economy where everyone can get ahead.
On behalf of the Government we extend our thanks to Tony Shepherd and all the members and staff of the Commission of Audit for their hard work undertaking this comprehensive audit of Commonwealth finances.
The National Commission of Audit report is available online at www.ncoa.gov.au.
For Mr Hockey - Gemma Daley - 0418 148 821
For Senator Cormann - Karen Wu - 0428 350 139