“I do think there’s a sweet spot between the austerity freaks who say cut way harder, and the green types who would happily see the bottom fall out of the budget,” said Mr Swan.
On the other hand, the Coalitions fears that Labor’s forecasts are not realistic. However, they also seem reluctant to voice their opinion on massive spending cuts.
The recently released budget does not include the baby bonus, which means the government will be saving up to $1.1 billion in the next five years. Defending the cuts, PM Gillard said the tough spending cuts would pay for key reforms such as the Gonski education funding and DisabilityCare.
“People can chide about the forecasts, but getting told off for failing to predict something that’s never happened before, I think from a common sense perspective people would say ‘gee, we understand it’s hard to foresee’,” Ms Gillard told a TV channel.