Government Justifies Slow GDP Growth in Parliament
The treasurer noted that the UK, Canada, and NZ had higher unemployment and interest rates compared to Australia.
During the first day of Parliament, Treasurer Jim Chalmers faced opposition challenges regarding his statement attributing the nation’s slow growth to “global factors.”
Members of the Liberal-National party pointed out that countries like the UK, Canada, and New Zealand were experiencing decreasing inflation rates, unlike Australia.
In response, Chalmers highlighted that these countries had higher unemployment rates and interest rates than Australia, with inflation peaking earlier and at higher levels.
Recent data from the Australian Bureau of Statistics revealed the lowest GDP growth numbers since the 1991-92 financial year, attributed to reduced household spending and decreased individual productivity.
While government spending increased, job growth mainly came from programs like the National Disability Insurance Scheme.
Shadow Treasurer Angus Taylor accused the government of causing a decline in living standards.
Amidst economic discussions, concerns were raised over the aggressive debt collection practices of the Australian Taxation Office, especially affecting small family-owned businesses.
Chalmers acknowledged these concerns and emphasized the importance of a fair approach to debt collection to support struggling businesses.
On the topic of government spending and inflation, Chalmers refuted claims that government spending was a significant contributor to inflation, citing the Reserve Bank Governor’s recent statements.
