More money may be pledged to help support the Australian economy
Australian treasurer Wayne Swan has hinted that the Australian government may launch an additional stimulus package in the May budget, to help the flagging economy.
Addressing the Sydney Institute, Mr Swan said the package would be the next step in the Government’s coordinated response to the global economic downturn.
Kevin Rudd’s government has come under fire in recent weeks for their response to the global recession, but today Mr Swan claimed that the May Budget would lay the “building blocks” for Australia’s economic recovery, by supporting jobs, provide secure and sustainable retirement incomes and maintaining an economic infrastructure and education.
“Our challenge will be to continue to stimulate the economy and continue to invest in the future, while working under the constraints imposed by collapsing revenue and the global recession,” he said.
“It will add to the steps already taken to support demand, support jobs, support growth, and build the schools, roads and homes the nation needs,” he said.
“The Budget will be developed consistent with our clear plan to return it to surplus and reduce debt over time.”
Previously, Mr Swan had refused to speculate on whether the Budget would include a stimulus package, saying only that the Government’s pledge to increase the aged pension still stands: “We have made a commitment to pensioners, we are serious with that commitment.”
He maintained his support for Prime Minister Rudd’s comments that the worsening global recession would make it “virtually impossible” for Australia to sustain positive economic growth.
Nevertheless Mr Swan said that while Australia was being hit hard by the global recession, it was still faring better than almost all other developed nations.
In 2008 the Australian economy was stronger than any of the G7 economies, with a lower unemployment rate than most, and a hugely stable banking system.
“Staying ahead of the game during this global recession will involve hard graft and pragmatic policy responses,” he said.
“It will take all our efforts to ensure the effective operation of the financial system, support jobs, and build the critical economic infrastructure necessary for future productivity.”
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