One nation exits qld parliament at noon with $8 billion deficit

Updated

The Federal Government’s $8.1 billion deficit after a $4.2 billion tax cut is a major blow to Prime Minister Tony Abbott’s government.

The debt was the result of $24 billion of tax cuts and spending cuts — an end-of-year cut to income tax.

It is more than the $21 billion deficit the Government declared three years ago before the budget.

Mr Abbott had said he would avoid the deficit by continuing with “budget measures that are sustainable and balanced”.

And he vowed to introduce the new 50-hundred-and-fifty-fifty threshold for income tax — an income tax rate equal to income tax minus GST — as early as next week.

“The key economic fact is that if you keep the budget deficit within the 40-50 per cent limits, you get a budget surplus,” he said.

“So, there’s no need to overspend… as long as we keep바카라 스토리 the budget within the rules.

“As long as we’ve not borrowed o온라인바카라r overspent we can cut our budget in a sustainable way.”

Mr Abbott said the Government was confident its economic growth had picked up.

“In the last fiscal year, it’s been more than 6 per cent, it’s been better than anyone’s believed in the last six months,” he said.

“And we’re still on tr바카라사이트ack to have more than enough capacity to grow the economy at 6 per cent or more.

“There’s no reason why it should be down to 2 per cent or less.”

But Treasurer Joe Hockey says the Government’s economic outlook is under water.

“Australia’s performance, with all due respect to the Government and the Prime Minister, has been weak over recent months,” he said.

“And on that basis the Government will continue to be cautious until we have some momentum.”

Shadow treasurer Chris Bowen says a deficit of $11 billion should be considered a “reasonable risk”.

“If you’re in the Budget in April but you’re in a weaker economic position than we knew at the beginning of this year, it does leave you with a deficit of between $10 billion and $12 billion,” he said.

But Shadow treasurer Tim Nicholls says it could be bigger.

“There’s going to be an immediate question mark in parliament whether or not we’ve avoided a fiscal emergency,” he sai