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Australian firms urge government to freeze spending

Australian firms urge government to freeze spending

Australian businesses urged Treasurer Wayne Swan to freeze government spending for the next three years, saving 32 billion Australian dollars (US$29.6 billion) to cool inflation.
The Business Council of Australia called for the freeze in a submission as the government starts work on its first budget since winning elections in November.
"Strong fiscal discipline is needed now, given the outlook for inflation," council president Greig Gailey said in an e-mailed statement. "The council is calling on the federal government to significantly cut spending and to improve fiscal processes and accountability."
Australian Prime Minister Kevin Rudd's government last month said it plans to trim spending to increase the budget surplus under a five-part plan to tackle inflation, which accelerated to a 16-year high in the fourth quarter. The Reserve Bank of Australia on February 5 raised its benchmark interest rate by a quarter percentage point to 7 percent, an 11-year high.
Australia's budget has been in surplus for nine of the past 10 years and the economy is in its 17th year of expansion, driven by demand from China for its mineral resources.


Updated : 2021-07-28 03:42 GMT+08:00