The Rudd Government has promised to take on economic instability, but first placed blame for inflation with the previous Liberal government. However, with figures from the Department of Finance presenting real growth in official spending at a 20-year high, it seems the blame isn’t unfairly placed.
“We've inherited a major difficulty from the former government,” Finance Minister Lindsay Tanner said on the ABC’s 7.30 Report. “It tried to buy its way back into office. It splashed money around on all kinds of things and we've got to slow that rate of growth substantially.”
The solution? Large budget cuts─$10 billion over the next four years.