Sam Armytage’s tough message for Anthony Albanese’s government

Today show host Sam Armytage has scoffed at the Albanese government’s claims it has reined in spending after a mid-year budget update revealed a ballooning deficit.

On Thursday morning Armytage introduced her interview with Finance Minister Katy Gallagher by calling budget figures revealed on Wednesday ‘grim’ with the deficit blowing out by nearly $22billion and national debt forecast to go over $1trillion.

In response Senator Gallagher claimed the government had found $92billion in savings, Armytage interrupted with a sceptical laugh.

‘You’re spending more, more than you forecast,’ Armytage said.

Undeterred Senator Gallagher pressed on.

‘We’ve found $92billion in savings, we’ve lowered the debt, we’ve lowered the interest on that debt, we’ve delivered two surpluses,’ she said.

‘The budget is $200billion better off than what we inherited, and that’s because of the decisions we’ve taken, but yes, there is more work to do, there is always more work to do.’

Earlier, Armytage asked why spending had not been reined in.

‘These figures are grim. You say this is a balancing act, but spending has blown out here. Why haven’t you reined it in?’ Armytage asked.

Senator Gallagher blamed automatic payments.

‘I think one of the reasons that we’ve seen some of the slippage, as you say in your intro is really about those payments that are automatic, so pensions, payments to veterans, use of Medicare, use of childcare subsidy, she said.

‘Those are important supports that the government provides to the Australian community to make sure that people are getting the help that they need.’

Armytage pointed out the government had set aside $5.5billion for an election ‘war chest’. 

‘So, will we see more cost of living relief promised by the Treasurer ahead of the election, because this is all Australians are talking about at the moment,’ she asked. 

Senator Gallagher would not be drawn on new measures but listed actions the government had already taken such as subsidising energy bills, the Stage 3 tax cuts, childcare subsidies and HECs handouts. 

‘We keep an eye on what else we can do to make sure that we are providing cost of living support for the Australian people and we’ll continue to do that,’ Senator Gallagher said.

Finance Minister Katy Gallagher (pictured right) insisted the Albanese government had reined in spending

When pressed further on cuts Senator Gallagher would only say what the government wouldn’t touch. 

‘We will make sensible savings, we won’t slash and burn,’ she said.

‘We’re not going to pretend that you can cut Medicare or cut childcare subsidy or cut pensions as a way of getting the budget bottom line in better shape because people deserve and rely on those services as well.’

On Wednesday, Treasurer Jim Chalmers gave a mid-year update on the federal budget. 

The figures showed the budget bottom line expected to be $21.8billion worse off than previously forecast over the next four years, the mid-year economic and fiscal outlook revealed.

With spending increasing due to challenges like an ageing population and tax receipts falling due to sluggish economic growth, Australia is not expected to be back in surplus until 2034/35.

EY chief economist Cherelle Murphy warned that the government’s finances have long been in structural decline but nothing is being done to reverse it.

The deficit downgrades are expected to add an extra $49billion in government debt by 2027/28, meaning more money will need to be devoted to interest payments.

That meant less flexibility to fix the problems of the future, according to Ms Murphy.

‘The government has failed to deliver a path to lift the prosperity of the Australian people and grow its way out of the debt burden,’ she said.

‘We need a plan to jump start our productivity through major reforms – including, importantly, to our tax system, trade and education – or we will face higher taxes and cuts to essential services in the future.’