Grattan Institute says government’s own budget forecasts would necessitate ‘significant cuts in spending’Labor has accused the Coalition of planning secret spending cuts, growing to $40bn a year by the end of the decade, based on figures in its own 2019 budget. So the shrinkage in the spending to GDP ratio implies the government will need to cut spending by about $40bn a year by 2029-30. On Tuesday Morrison said the claim of a $40bn spending cut is “absolute complete rubbish”. This indicates Labor will seek to keep the pressure up and the case of the $40bn spending shrinkage will be a key issue. The idea that shrinkage can be achieved without major cuts to programs relies on the assumption the government can keep spending growth at 1.3%.

Source: The Guardian April 17, 2019 18:00 UTC