Interview with Alex Kirk

ABC Radio, Early AM Program

10 May 2010

SUBJECTS: 2010-11 Budget; 2 per cent real spending cap v 4 per cent real spending growth in last 5 Coalition budgets

KIRK:

The Prime Minister is hoping what he calls his No Frills Budget woos some voters back.  Treasurer Wayne Swan has already put it to bed.

TREASURER:

Well, the Budget will do a lot of heavy lifting; it will fund necessary long-term reforms while delivering on our very strict fiscal strategy.

KIRK:

You say some people might find it boring.  Are you talking it down so people will be pleasantly surprised when all is revealed tomorrow night?

TREASURER:

Well, Alex we're concentrating on the long-term.  There will be a shift in focus from fending off recession to building a post crisis economy that gets on with delivering that essential productivity agenda that we need for sustainable growth.

KIRK:

Clearly you're keeping a lid on spending.  Are you saving it all up for after the Budget in the lead up to the election?

TREASURER:

There's going to be a very tight fiscal strait jacket for all to see on Tuesday night.  That means holding real spending growth to 2 per cent in above trend growth years, until we get back to surplus, and it also means offsetting our new spending commitments, in contrast to our predecessors.  In the last five budgets of the Howard Government real spending growth averaged almost 4 per cent.  That's double the cap we've set for ourselves.