Government unworried about threat of AAA credit rating downgrade, refusing to change its Budget plans

MATHIAS Cormann appeared unconcerned about threats to Australia’s AAA credit rating, as Malcolm Turnbull said every dollar in the Federal Budget will be funded.

Mathias Cormann speaking in the Senate Chamber, Parliament House in Canberra.

FINANCE Minister Mathias Cormann appears unconcerned about possible threats to Australia’s AAA credit rating, saying the government remains committed to its “responsible” budget plan.

Ratings agency Moodys yesterday warned of a possible downgrade to the nation’s credit rating, questioning where the Turnbull Government could bring the budget back to surplus through savings measures alone.

But Senator Cormann said the government would continue to focus on controlling expenditure.

“In the end Moodys can make their own assessment after the Budget has been released and I am sure they will,” he told Sky.

“Our focus is on managing our Budget responsibly; getting the budget back into balance as soon as possible, but in a way that is economically responsible.

“And our focus very much is on doing what needs to be done to continue to successfully transition the Australian economy to the new diversified economy of the future.”

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Prime Minister Malcolm Turnbull said Moody’s advice reinforced the government’s message that Australia must “live within our means”.

“And really the lesson of the Moody’s advice should be heeded by Mr Shorten,” he said.

“After all, he is the one who has gone out with $51 billion, and rising, promises which are utterly unfunded.

Federal Treasurer Scott Morrison speaking to the media in Sydney today. Picture: AAP

“Every dollar we spend, as you’ll see in the Budget on 3 May, will be funded. You’ll see the source of funds for that very plainly set out.

“What Mr Shorten is promising is simply higher tax and more debt, bigger deficits.”

Treasurer Scott Morrison confirmed the May 3 Budget would include revenue boosting measures, but insisted the overall tax burden would not be increased.

“Since 1901 there have been revenue measures in every Budget and there’s revenue measures in this Budget,” he said.

“What I said yesterday was entirely unremarkable and I think the response to those comments have been feverish but a little too enthusiastic which you normally see in the lead up to the Budget.

“What I can tell you about revenue is our revenue measures are designed not to increase the tax burden on the Australian economy but to ensure we’re better and more fairly targeting our tax system so that we can support investment which supports growth, which supports jobs.”