SYDNEY: Australia’s central bank governor Glenn Stevens yesterday urged politicians to work together to address the growing gap between fiscal spending and revenue, as the government battles to push through massive budget cuts.
In a rare newspaper interview, Stevens told The Australian “financial markets might not be so forgiving as they are now” if the country did not start to manage its budget “in a measured way”.
The Reserve Bank governor’s comments followed a chaotic week in Australia’s upper house that saw the conservative government’s attempt to repeal a carbon tax fail when a minor party withdrew its support.
Stevens said while Australians have supported recent spending plans for education and disability, “we didn’t actually vote for the revenue to fund them just yet and so that’s the kind of fundamental issue that will emerge more clearly in a few years time. The main point simply is, there is a medium-term issue which will grow if it’s not addressed. And it would be best to be agreeing on measures now that will address it over time, rather than let it fester and be faced with more genuinely draconian measures at some later day.”
The Labor and Greens opposition parties have criticised the governing Liberal Party for the tough budget measures that cut back on welfare and spending. AFP
