Sunday, May 18, 2014

Abbott's debt message is fortune telling

Prime Minister Tony Abbott has accused Labor of running up $667 billion debt without clarifying this is a treasury projection for a decade in the future.

Mr Abbott posted a Youtube video on Saturday that he described on Twitter as an "update on what the Government is doing to fix Labor's legacy of debt and deficit".

The two and a half minute video opens with Mr Abbott looking directly at the camera saying: "Over six years, Labor ran up a $667 billion debt on the nation's credit card.  Every single month this debt is costing use a billion dollars just to cover the interest bill."

The $667 billion debt figure is in fact a Treasury projection for 2023-24 and was first referred to by the Treasurer Joe Hockey in December's Mid-Year Economic and Fiscal Outlook.

Australia's current level of debt is in fact close to $300 billion - and is comparatively low by international standards according to the ABC factcheck.

The MYEFO data is also the source of the claim that we are paying one billion dollars per month in interest.  Projections for 2015-17 support this claim.

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