PEFO confirms need for more active fiscal policy: Greens

Greens Treasury spokesperson Adam Bandt MP today said the Pre-election Economic and Fiscal Outlook released today confirms there are bleak economic conditions ahead if the government continues with its fiscal policy. Mr Bandt said the time is ripe for governments to take advantage of low interest rates and responsibly increase borrowing to fund productive infrastructure, including clean, renewable energy projects. Mr Bandt added that the lowest wages growth in at least 18 years reported since the Budget confirms that now is not the time for unaffordable and unfair income tax cuts.

“With lower than usual inflation, interest rates, GDP growth and wages growth, we need a more active fiscal policy to turn the ship around,” Mr Bandt said.

“Since the Budget was handed down, wages growth has hit its lowest level in 18 years, even lower than those experienced following the Global Financial Crisis. This confirms now is not the time for the government and Labor’s unaffordable and unfair income tax cuts for above average income earners.”

“It’s time for some green Keynesianism as we start the next Apollo project, making Australia a renewable energy superpower.”

“The Greens believe we should be taking advantage of this historic opportunity for governments to borrow responsibly and cheaply to start building clean, productive infrastructure now.”

“We can responsibly borrow up to $75 billion over the next decade to fund much-needed infrastructure, including public transport and clean, renewable energy.”

Media contact: Adam Pulford, 0429 109 054