RTR4RENW
IN PHOTO: Indonesian activists hold coins during a protest against what they say is pressure from Australia on Indonesia to cancel upcoming executions of Australian citizens, outside the Australian Embassy in Jakarta February 27, 2015, in this photo taken by Antara Foto. Protesters collected coins to return to Australia after Australian Prime Minister Tony Abbott said last week that Australia would feel "grievously let down" if the executions proceeded despite the Pacific nation donating A$1 billion ($782 million) to assist Indonesia's Aceh province after the devastating 2004 Indian Ocean Tsunami. REUTERS/Antara Foto/Sigid Kurniawan

Australian Prime Minister Tony Abbott said that the 2015 Federal Budget would be “dull.” Abbott, on the other hand, hinted that the public might get much affected by it.

Abbott said that the budget would not be repaired at the expense of the budget of the public. The Expenditure Review Committee is expected to meet on Tuesday night. There are only eight weeks to go before the Coalition lays out its second budget.

Abbott said that the budget was going to be “frugal” and “responsible.” "But I think when it comes to savings people will find it pretty dull and routine," he said. The Australian PM, on the other hand, did not clarify if the budget would be repaired through spending cuts or spending freezes.

Abbott added that the government was “very close to budget balance in about five years" despite what the Parliament and the Senate had approved. He said that the budget had been “completely out of control” under the Labor government. He said that Australia was heading to a Greek-style economic future. He called it “manageable” under his government. He also said that the deficit would be less than 1 per cent of GDP by 2020.

The Intergenerational Report forecasts that the deficit will deteriorate to almost 6 per cent of GDP by 2054-2055. It also says that there will be no indication of reaching a surplus either. While Abbott acknowledged the forecast, he said that there would be problem “beyond that” after the budget got back to “broad balance.”

Labor earlier condemned Abbott’s claim that the country was heading for a "Greek-style economic future." The comment was labelled as irresponsible, inflammatory and capable of harming economic confidence. The Organisation for Economic Co-operation and Development said in 2012 that Australia’s debt was 42 percent of GDP while Greece’s was 164 percent.

Shadow treasurer Chris Bowen earlier said that the prime minister should not scare consumers and business owners. According to Bowen, such “irresponsible language” would do real damage to Australia’s confidence. Bowen also said that Abbott should be far more responsible than such “constant scaremongering.” He added that the prime minister’s attitude was having a clear impact on the community’s confidence.

Contact the writer: s.mukhopadhyay@ibtimes.com.au

RELATED STORIES