Australia's financial needs "major surgery", the new budget will greatly save money
[Guide] For the future, the Australian Audit Committee recommends that the country must take drastic measures to "major operations" on finances to reduce expenditures and public services; achieve necessary privatization; pay off debts and achieve fiscal surpluses; only in this way can it resist The global economic crisis is likely to make a comeback. They believe that in order to achieve this goal, various measures and suggestions are in their consideration.
(The Australian Audit Committee is headed by Tony Shepherd, Chairman of the Business Council of Australia (BCA).)
According to reports from The Australian and ANZ, the Audit Committee, which was commissioned by the Australian Federal Government and headed by Tony Shepherd, Chairman of the Business Council of Australia (BCA), is conducting a review of the Australian economy and finances. Review and make comprehensive recommendations to the government. Today, the Australian Federal Senate convened a meeting to question the work of the Audit Committee.
At the questioning meeting, the director of the audit committee, Shepherd Shepherd, said that Australia is facing many challenges, such as an aging population, weak productivity, the continued strength of the Australian dollar, high energy costs, over-reliance on the resource industry, and uncertain global political and economic prospects.
The audit committee is most concerned about how Australia can prepare for a financial crisis that is likely to come again. To this end, Australia must cut spending and achieve a fiscal surplus. Sheppard said that the audit committee will make various necessary recommendations to the government, including the privatization of public facilities and an increase in consumption tax (GST). He suggested that the government's budget requires major surgery.
Sheppard also said that if Australia does not end its current fiscal deficit and pay off its debts, it will always be in a situation where it cannot withstand global economic turmoil. He said Australia needs to return to its fiscal surplus so that it can withstand the recurrence of the global financial crisis. And such an economic crisis is almost inevitable.
"Before the last global financial crisis, we had accumulated reserves, so we were able to deal with it. This really helped us, no doubt," he said. "Now we need to do this again-we need to repay our debts, Build our reserves so that we can deal with the next-in my words-the inevitable crisis."
The Australian Federal Budget, which will be released in May, will reflect the recommendations of the Audit Committee and is expected to make a plan to significantly reduce public services.
In the Senate questioning session, the Audit Committee made it clear that they are considering proposals for various reforms to improve fiscal losses by A$600 billion or more per year. In 2023-24, a fiscal surplus of 250 billion Australian dollars, or 1% of GDP, will be achieved, which is calculated based on the IMF’s outlook for the Australian economy.
"At present, from the perspective of the national Australian finance, the key indicators are very good," Sheppard said, but some problems are worrying. "We are very dependent on the resource sector and the price difference between imports and exports. In recent years, Our vulnerabilities in these two areas have already emerged. We believe that in terms of the economy, this is like putting all your eggs in one basket. Therefore, we say that this is important for our country’s future, economy, Employment and development are very dangerous."
He believes that Australia is right in many fundamental aspects, but in order to improve the quality of life of future generations, we need to make structural adjustments. The audit committee will complete its preliminary report at the end of this month and the final report at the end of March.
The audit committee received more than 300 proposals, many of which came from chief officials of government departments. They have held talks with the governors and ministers of several provinces, as well as SBS television, Australia Post and other departments.
It is speculated that the government will consider selling the national disability insurance plan and selling SBS TV. Labor Senator Sam Dastyari said that the audit committee met with SBS TV because it was either sold or prepared to apply it to the ABC TV station of the Australian Broadcasting Corporation as a semi-private fundraising model. Sheppard declined to comment on this.
Australian Green Party Senator Richard Di Natale (Richard Di Natale) asked the audit committee to consider new ways to increase revenue, rather than focus on reducing spending. The Audit Committee said that they are cautious because raising taxes will add new burdens to the economy. But they are reviewing the taxation status of the provinces, because the imbalance between the federal and provincial taxation issues has posed a threat to Australia's federal system.
They may suggest an increase in consumption tax, although the government has vowed to not make any changes in this regard. When Labor Senator Sam Dastyari asked if Sheppard insisted on what he had said publicly about raising the consumption tax rate and expanding the scope of its collection, Sheppard replied that he was open to it.
Sheppard said that the past privatizations were generally very successful, and future privatizations will be based on actual conditions. He said that the final audit report may not meet with the public, but it is the government's responsibility to make specific decisions.
The chairman of the Australian Council of Trade Unions (ACTU) Ged Kearney criticized the audit committee for opaque work and called on the audit committee to publish its recommendations as soon as possible.
The Labour Party and the Green Party requested the audit committee to make the proposals received publicly available. The leader of the Australian Opposition Party, Bill Shorten, said that the Australian people have the right to know what the cuts are going to be caused by the audit. The Green Party is also concerned about what kind of public services will be cut.
Australian Finance Minister Joe Hockey said that after the report is completed at the end of March, it will not be announced until he has formulated the May budget.