Robb uncertain on budget surplus: Wong

The federal government says opposition finance spokesman Andrew Robb has admitted he can’t be certain a coalition government will deliver a budget surplus in its first term of government.

Finance Minister Penny Wong said Mr Robb had exposed the Liberals’ economic strategy for what it was – all negativity and no substance.

“Surely this is the final nail in the coffin of the Liberals’ economic credibility,” she said in a statement.

“Tony Abbott talks about the hard decisions but his finance spokesman has admitted today that the Liberals won’t commit to a surplus in the first term of a coalition government.”

Asked on ABC television whether he could see a coalition government delivering a surplus during its first term, Mr Robb replied: “Well, it just depends. As I say there’s so much uncertainty around the numbers.”

Senator Wong said that wasn’t surprising given that opposition treasury spokesman Joe Hockey had committed to coalition to a $70 billion in spending.

“Unlike the Liberals, the Government remains determined to return to surplus in 2012-13, despite global volatility making the job harder,” she said.

“Australians should be very concerned about the economic circus that sits on the Coalition front bench and whose so-called election auditors were found guilty and fined for professional misconduct.”

In the interview, Mr Robb said an election in October 2013 meant a coalition government budget could still be two budgets away.

“And who knows what the state of the books will be at that stage,” he said.

In a later statement, Mr Robb said this was real desperation from Senator Wong and Labor who fantasised about surpluses but had never actually delivered one.

“The coalition would always deliver a surplus before this government whatever the circumstances and would do so as soon as possible,” he said.

“Who knows also what further damage this lot will do to the budget between now and the next election.”

Mr Hockey stood by the coalition’s plan to reach a surplus as soon as possible.

“We have said, based on 2010 figures, we would have a surplus next year. We stand by that.

“This government promised a $22 billion deficit this current year. It’s blown out to $37 billion.

“Every time they make a commitment about a level of deficit, it gets much larger,” he said on the ABC’s QA program.

“From our perspective we will get to surplus as soon as possible and if we were basing it on the 2010 election figures we would get there next year and we stand by that.”

Mr Hockey said a future coalition government would cut the Canberra public service which had increased by 20,000 under Labor.

“I know it gets me into trouble with my colleagues in Canberra but I have said 12,000 will be made redundant within the first two years as a starting point,” he said.

Mr Hockey said for example there were 6500 in the Health Department, with no patients, doctors or nurses.

“I’m sorry but you can’t live outside your means,” he said.

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