Al-anwar Newspaper English news in Australia
Prime Minister Anthony Albanese is being urged to cut spending to “very costly” major projects across Australia if the government hopes to curb spiralling debt ahead of May’s federal budget.
The Grattan Institute has issued several recommendations to slash projects like Victoria’s Suburban Railway Loop and increase taxes, amid concerns Australia faces 25 years of budget deficits.
In October’s budget, Treasurer Jim Chalmers warned Australia’s debt would rise to $44 billion (2023/24) and continue to grow by an average 14 per cent across the next four years.
The think-tank has also proposed stopping “wasteful” spending and axing “megaprojects” which it claims are poorly conceived and cost taxpayers billions.
“One of the biggest cost savings available to governments is to stop making bad decisions – poorly conceived, often politically motivated decisions have proved very costly, especially as ‘megaprojects’ have become more common,” the report states.
The report put the Andrews Suburban Railway Loop on the chopping block, saving $2.2 billion – part of Labor’s $9.6 billion infrastructure bonanza – due to a “questionable” business case.
The advice is ill timed with news that Victoria seeks a Commonwealth bailout amid a $165 billion debt bill and has been misusing $250 million of its own state funding to “bribe” residents for SRL project support.
Another infrastructure project in question is a potential budget blowout of the $15.4 billion Inland Rail Project, a freight network between Melbourne and Brisbane.
It also suggests $15 billion could be saved in cutting Western Australia’s special deal on GST and abolishing Family Tax Benefit part B for couples.
Other controversial considerations include redesigning the stage three tax cuts, raising GST and introducing both carbon and inheritance taxes to boost revenue.
As Aussie continues to grapple with high inflation and several cost of living pressures, all eyes are on the May 9 budget and how the Albanese government will manage to repair the debt.
Deputy Liberal leader Sussan Ley stressed the urgency of the upcoming budget to get it right given how many people were feeling the pinch.
“There is a feeling that people have been left behind,” she told Sky News Australia on Wednesday.
“So important that the government gets this budget right.”
