Abbott claims latest RBA statement scores Feds economic policies
The latest economic pronouncements of Reserve Bank of Australia (RBA) governor Glenn Stevens are acts of veiled criticisms on the economic policies of the Labor-led federal government.
This according to Opposition Leader Tony Abbott, who said on Tuesday that Mr Stevens' calls on the government to establish a savings fund amidst the anticipated economic boom effectively shot down the economic management stuly of Prime Minister Julia Gillard.
He added that the RBA governor is also critical of the recently-debated national broadband network project as he suggested that without the benefit of an effective cost-benefit analysis being pushed by the Coalition, the NBN initiative would be shunned by Mr Stevens.
According to Mr Abbott, when the RBA chief expressed the importance of savings even if Australia appears to be enjoying record levels of prosperity, it meant that Ms Gillard and her government need to refrain from their excessive public expenditures.
The whole idea, Mr Abbott said, delves on the argument that "it's only if you can get your spending under control that you can devote money to funds or devote money to paying down debt, which is obviously the most important part of government."
Mr Stevens asserted on a Monday speech that the Australian government would be wise to save up for the longer term, which he said is the most effective way of combating the ill-effects of an overheating economy.
The RBA has reaffirmed that more economic expansions would be forthcoming, mostly due to the commodities boom and its subsequent delivery of export earnings.
Mr Stevens said that Australia could be soon facing the daunting task of efficiently managing the country's ballooning national income when the minerals boom reaches its height yet Mr Abbott simply interpreted the RBA governor's statements as "a series of effectively coded criticisms of the federal government's economic policies."