This is a high taxing, high spending old fashioned Labor Budget. The Rudd Government’s first Budget is not an inflation fighting budget as the Government claims, according to Shadow Treasurer, Malcolm Turnbull.
He says, "It is not a Budget that lifts a finger to help Australians battling with rising costs of living – petrol, groceries, private health insurance and home interest rates.
"The only bright light in which we can all take comfort is the strength of the Australian economy and the cuts in personal taxation all courtesy of the previous Coalition Government.
"What was Mr Swan thinking when he said the Budget would slash spending to put downwards pressure on inflation?
"Spending has gone up by $3 billion in this current financial year and by $14.9 billion over the forward estimates.
"Over the forward estimates, Labor has cut $15.2 billion off Coalition spending programs, but it has more than matched that with $30.1 billion of new Labor spending programs.
"Why didn’t someone tell Mr Swan that inflation is caused by rising prices?
"After years of Coalition tax cutting budgets, Mr Swan is introducing new taxes to raise the cost of alcohol, motor cars, health insurance and energy all of which contribute to inflationary pressures.
"Preliminary economic modelling estimates that Mr Swan’s new taxes and charges could add up to 0.4 percentage points to the CPI.
"The Rudd Government is always talking about the threat of climate change and the need for an Emissions Trading Scheme, however the Budget papers make no provision whatsoever for the revenues from the Emissions Trading Scheme due to commence in 2010 – well within the period of the forward estimates.
"And how can the Rudd Government seriously propose to put $20 billion of Australians’ savings into an infrastructure fund without any indication of what kind of economic return the fund will be expected to deliver?
"Australian taxpayers are entitled to question whether this will just be a Labor slush fund to subsidise the inefficient water, transport and energy infrastructure of State Governments.
"Mr Swan has written himself a blank cheque with the savings of a nation."
"And when it comes to the massive, and worsening challenge of water scarcity, the best the Labor Government can do is spend a net additional $1 billion over seven years over and above the commitments made by the Coalition in the National Plan for Water Security."