PETER Costello has warned against governments spending money they don’t have when debts are already looming.
The former federal treasurer slammed the Labor government for “waste and mismanagement” of the nation’s economy and blamed independent MPs for the “failure” of the last Parliament.
Mr Costello made the comments in Wangaratta yesterday, as he joined the list of prominent Liberals to visit Indi in the campaign to keep Sophie Mirabella in Parliament.
He was responding to questions on statements by Nobel Prize winning economist Joseph Stiglitz that Australia’s economy was still going strong and now was the time for investment and spending.
“It’s very easy to spend money you don’t have,” Mr Costello said.
“The hard part comes when you’re trying to pay it back again.
“This government decided to stimulate the economy in 2008... and is putting forward deficits for the whole of the next term.”
Asked about the Coalition’s $4.2 billion of spending promises and why it hasn’t revealed how all of this will be paid for, Mr Costello was dismissive of such questions.
“I think the Coalition is releasing all of it significant policies and all of its final costings this week,” he said.
“And I think, as Tony Abbott has made entirely clear, their purpose is to run a much better budget policy than Labor, and it wouldn’t be hard to do.”