Coalititions promises are almost double the ALP's
Analysis by The Australian reveals the Coalition needs to find savings of almost $20bn a year from 2017-18 to offset its spending and tax cut promises, while Labor has to find annual savings of only $10bn, with the challenge rising sharply beyond the budget period. The ALP believe it will be easier for them to claw back the $10 billion than the Coalitions $20 billion worth of promises.
Total spending commitments in the four years beyond the budget projections - for major projects such as the Gonski school funding reforms, the DisabilityCare scheme and paid parental leave - are $56bn for the Labor and $89bn for the Coalition.
Chris Bowen claimed at the start of the election campaign that he was delivering a "structural improvement" in the budget over the next few years, while Coalition Treasury spokesman Joe Hockey has warned of an urgent need to find "structural saves" in commonwealth finances.Yet it seems that they don't know where they will find the extra money to reach brake even.