Labor will deliver a billion-dollar improvement in the budget bottom line, the treasurer says, despite unveiling a raft of election sweeteners.
Jim Chalmers said the cost of Labor’s election promises would be offset by more than $7 billion in savings, meaning the budget deficit would be reduced by $1 billion over the next four years compared to pre-election forecasts.
A crackdown on the use of consultants and labour hire in favour of public servants will save $6.4 billion, he said, offsetting the price of Labor’s election policies such as a tax cut and more money for health services.
Dr Chalmers said the government would also save $740 million from increasing application charges for student visas to $2000 from July.
“These costings show that we are managing the budget and the economy in a responsible and a considered and a methodical way,” he told reporters in Brisbane on Monday.
“We’ve made it very clear what our costs are and how we will pay for the commitments that we have made in this election campaign.”
The savings from reducing consultant spending in favour of relying on the public service come as the coalition pledges to cut 41,000 positions from the government workforce.
Opposition Leader Peter Dutton said coalition costings would be released “in due course”.
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