FACTCHECK: Has the Federal Government Cut Spending?

Almost every day we hear shrieks in the media about how the Federal Government is drastically slashing spending.

Even the Federal Government uses the rhetoric of  cutting spending and “budget repair”.

But is this actually true?

Is the government cutting spending?

Make no mistake – our public spending levels are out of control, and things are only going to get worse as debt piles up, and our aging population puts increased costs on health and welfare.

Our economy is already being held back by big government. So spending cuts are desperately needed.

So is the Federal Government actually making them?

Because unlike politicians, the numbers don’t lie:

Here are the projections from before the last election in the the Pre-Election Economic and Fiscal Outlook. This is what expenditure would have looked like had all of Wayne Swan’s spending continued:

2014-15: $416.0 billion

2015-16: $430.9 billion

2016-17: $454.5 billion

Now let us compare these numbers to what Joe Hockey has planned as revealed in last week’s MYEFO.

As such, these are the numbers the Federal Government wants:

2014-15: $422.9 billion

2015-16: $436.5 billion

2016-17: $446.4  billion

Let’s visualise this:

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Can you see any of the spending cuts the media keeps talking about?

If not, there’s a reason for it – they simply aren’t there.

It is critical to note that these figures can not be blamed on an obstructionist senate. Firstly, as the MYEFO states “Around 75 per cent of the over 400 measures in the Budget have already been implemented. Included in these measures are some of the Government’s largest decisions“. More critically, policy announcements made, but not yet implemented, are included in the MYEFO expenditure numbers. This is the best case senario.

And, to make matters worse, Joe Hockey has ruled out spending cuts in the future!

Because the evidence is crystal clear – despite manufactured hysteria by the left: the Federal Government has not only NOT cut spending, it hasn’t even cut the GROWTH of spending!

Australia DESPERATELY needs to cut overspending – we truly are on the brink of a fiscal crisis, and as the Inter-Generational reports shows, it will only get worse.

Sadly, so far, it seems the Federal Government just isn’t up to the task.

(h/t to Professor Sinclair Davidson from RMIT University, and member of the Australian Taxpayers’ Alliance Board of Advisers, who has similar data here, and who also concludes: “there has been no cut to spending, simply spending rearranged”)

 

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