Australia’s new treasurer Jim Chalmers says Australians will pay off a massive debt built up during the pandemic for generations.
He added that the country did not have enough to show for it due to the mismanagement of funds by the previous government, including “rorts”.
“The budget is seeping with a trillion dollars in debt. It will take generations to pay off our inherited debt,” Mr. Chalmers told ABC’s 730 on Tuesday evening.
““This is a big, substantial problem. You can’t just flip a switch and make a trillion dollars in debt disappear. It will be a long time of hard work.”
He said the first step would be to check the budget to find ways to reduce waste.
Camera IconAustralia’s new treasurer said the economic challenges, including a trillion-dollar debt, were clear. NCA NewsWire/Martin Ollman Credit: News Corp Australia
Mr. Chalmers has briefed the Treasury Department for the past three days, including a candid look at the state of the economy preparing for the incoming government, known as the “Red Book”.
“The challenges in the economy are pretty obvious. We have high and rising inflation and, thus, rising interest rates. We have real wages that are going down quite a bit. And we have a trillion dollars in debt in the budget,” he said.
Faced with the challenges, the government aims to improve the “quality” of spending in its budget to ease financial pressures on families and create better outcomes without increasing inflation.
“You do that with cleaner and cheaper energy, you do it by increasing the workforce through childcare reform, you are educating people so that they can work more and earn more in those higher wages, higher-skilled opportunities that arise.” in an economy like ours,” said Mr. Chalmers.
Camera icon Since being sworn in as treasurer, Jim Chalmers has spent days briefings with top government officials. NCA NewsWire/Andrew Taylor Credit: NCA NewsWire
Mr. Chalmers will meet with Reserve Bank of Australia boss Philip Lowe and other representatives of the regulator.
“Phil Lowe is someone I have a lot of respect and respect for. I’ve known him for a long time now. I’ve worked closely with him in the past. And the same goes for the Chancellor of the Exchequer and several other regulators,” he said.
He has also sought advice from former famed Labor treasurers Paul Keating and Wayne Swan on handling the role.
“Paul is someone I’ve become very close to over the past ten years, or a year and a half. And I really appreciate his friendship and advice,” said Mr. Chalmer.s.
“He’s one of the reasons I got into politics first.”