Mathias Cormann is too embarrassed by the state of his own Budget to confirm the gross debt numbers revealed on Tuesday night.
The Finance Minister was asked six times last night what the figure would be, but he was too ashamed to answer.
The Turnbull Government’s own Budget papers show that gross debt is expected to crash through the half-a-trillion dollar mark by the end of this financial year – 50 days away – for the first time in the country’s history.
Scott Morrison was forced to raise the nation’s debt ceiling to an unprecedented $600 billion as a result.
What the Finance Minister is too embarrassed to admit is that gross debt doesn’t even peak in the Turnbull Government’s Budget papers – it continues to blow out until it hits $725 billion in 2027/28.
The Budget also shows net debt will hit record levels over the next three years and the deficit is 10 times bigger for the coming year than was predicted in the Liberals’ first Budget.
It’s time Cormann, Malcolm Turnbull and Scott Morrison fessed up to the Australian people about the true state of the Budget on their watch.
Transcript of Mathias Cormann on The Bolt Report on 10 May 2017:
ANDREW BOLT: The Government yesterday lifted the debt ceiling to $600 billion. Now what do you think our peak debt will be? What will the level be? Will it go beyond that at any stage do you think?
MATHIAS CORMANN: Well we're obviously working on keeping debt as low as possible and let me tell you that debt is lower than what it would have been if Labor had won the 2013 or the 2016 election. Now Government net debt, which is actually the most important indicator is expected to peak in 2018/19 at about 29.8 per cent of the share of GDP at about $375 million. And then both in dollar terms and in terms of the share of GDP is projected to come down, all the way down to about 8.5 per cent with the decade.
BOLT: What about gross debt? Can you tell me?
CORMANN: Well, I mean, I mean, obviously the gross debt numbers are published in the Budget papers and obviously the Treasurer has...
BOLT: No, that's what I'm asking you. I didn't see them, so maybe you can tell me. What will it peak at? The debt ceiling you say must be $600 billion. It's likely to go beyond that. I'm after the figure that you would have in your mind as to what that figure would be.
CORMANN: Well, well, well, what I'm saying to you is that we are working to keep gross debt as low as possible.
BOLT: Oh I don't doubt it. I'm just after the figure. I don't know why it's a secret. I would like the figure, that's all.
CORMANN: Well, the Treasurer has made the administrative judgement that he's made and, you know, we of course know that the...
BOLT: What? Not to tell us?
CORMANN: The decision that he's had to make was in order to ensure that Government can continue to function, that there's certainty, that there's certainty for, there's certainty for financial markets...
BOLT: No, I've got that. I'm just after the figure. I don't know why it's a secret.
CORMANN: ...financing arrangements.
BOLT: Why is peak gross debt a secret? Why can't you tell us how much the debt will go to? I mean, this is really important. You are the guy that was very strong on debt and deficit. I'd like to know what the figure is.
CORMANN: Well and what I'm telling you is that the debt number that actually matters is Government net debt and it will peak at $375 billion in 2018/19. It will peak at 29.8 per cent of the share of GDP...
BOLT: No, I got that. I got that. I'm just asking you - the debt ceiling is 600, what will you go above that? You're the ones that talked about the debt ceiling yesterday. I want to know, is that going to be broken?
CORMANN: Well, actually, I haven't talked about the debt ceiling. The Treasurer's made a decision in order to ensure that the operations of Government can continue in an orderly fashion, so he's made an administrative decision which is on the public record...
BOLT: I won't push it.
CORMANN: ...and that is to take the debt ceiling to $600 billion.
BOLT: I won't push it, but obviously it's going to be more than that.
