Today the IMF has backed the Albanese Government’s responsible approach to the Budget and economic management in an assessment following its annual consultations.
The IMF confirms that the Budget was responsible, right for the times, and readies Australia for the future.
This is a ringing endorsement of the Albanese Government's approach to responsible economic management.
It highlights the Government’s spending restraint and responsible approach to revenue upgrades won’t add to inflationary pressures in the economy.
“Near‑term fiscal restraint should support monetary policy in addressing demand pressures,” the IMF said in a statement. “The Budget’s streamlining of spending… should help avoid adding to aggregate demand pressures.”
The IMF has gone right through our plans and confirmed they are right for the times we confront.
The Government is returning 99 per cent of the upward tax revisions for the next two years to the Budget when the inflation challenge is most severe, and 92 per cent over the forward estimates.
This compares to the former government’s average of around 40 per cent.
As a result of our spending discipline, payments will fall in real terms over the next two years, and real spending growth averages just 0.3 per cent per year over the forward estimates.
The IMF welcomes the Government’s broader economic plan, including investments in cheaper and cleaner energy, cheaper childcare, paid parental leave, skills, policies to tackle climate change and our focus on boosting housing supply.
It praises policies that tackle skill shortages and boost workforce participation, including key outcomes of the Jobs and Skills Summit.
This is a strong endorsement of our economic policies and our Budget.
The IMF’s independent assessment confirms that despite a difficult international outlook and significant economic and budget challenges here at home, Australians should be optimistic about the longer‑term future of our economy and our country.