22 August 2013

Merrill Lynch Chief Economist finds $30b gap in Abbotts costings

The first independent economist to quantify the cost of the Coalition's policies has found a massive $30 billion hole in its spending announcements and costings – so far. 
Merrill Lynch Chief Economist Saul Eslake also criticised Tony Abbott’s Paid Parental Leave scheme saying, “we are sceptical of the Coalition’s assertions that the scheme will be good for the economy at large”. 
Mr Eslake says the Coalition has so far committed to $28.4 billion of tax cuts and $14.8 billion in new spending in the next four years, a total of $43.25 billion.
But he estimates the nine savings measures the Coalition has announced so far would save only $13.44 billion over the same period – a gap of $30 billion.
Federal Labor has criticised the Coalition for their planned cuts, such as Tony Abbott's promise to demolish the Schoolkids Bonus and rollback popular superannuation reforms.
Controversially, Tony Abbott has also promised to cut more than 12,000 jobs if he wins on 7 September.
Labor has seized on the ongoing credibility gap in the Coalitions figures to again call for Tony Abbott to release his costings in full.

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