Treasurer denies heavy Chinese importance
(13 May 2010 – Australia) Treasurer Wayne Swan has denied that the government's promise to eliminate the budget deficit by mid-2013 is heavily weighted on Chinese resources demand remaining undeterred in the face of global economic uncertainties.
The government forecast a return to surplus in by 2013 in its annual budget meeting on Tuesday; also upgrading its economic growth forecasts.
Economist Chris Richardson of Access Economics said that Australia’s economy was dependent on China, with the budget being even more reliant on the over-heating economy.
Mr Swan has strongly denied that the new budget forecast relied on a high demand from China for Australian commodities such as iron ore and coal.
The government is not banking exclusively on the terms of trade, Mr Swan said in a radio interview.
He also added that the government had only increased spending in 2010-11 by less than 2 percent and highlighted that they were offering a ‘no frills’ budget, only offering ‘responsible economic management’.
Michelle Grattan, veteran political commentator told The Age Newspaper that Labor’s third and pre-election budget is pretty ‘light on politics’, but its politics lies in its economics.
The budget had little affect on markets, which described it as boring. Investment bank JP Morgan called it a 'beige budget' which projected an aura of fiscal responsibility.
Economist Chris Richardson of Access Economics said that Australia’s economy was dependent on China, with the budget being even more reliant on the over-heating economy.
Mr Swan has strongly denied that the new budget forecast relied on a high demand from China for Australian commodities such as iron ore and coal.
The government is not banking exclusively on the terms of trade, Mr Swan said in a radio interview.
He also added that the government had only increased spending in 2010-11 by less than 2 percent and highlighted that they were offering a ‘no frills’ budget, only offering ‘responsible economic management’.
Michelle Grattan, veteran political commentator told The Age Newspaper that Labor’s third and pre-election budget is pretty ‘light on politics’, but its politics lies in its economics.
The budget had little affect on markets, which described it as boring. Investment bank JP Morgan called it a 'beige budget' which projected an aura of fiscal responsibility.
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