Australia’s Liberal-National government, which took power seven weeks ago, says the budget position has worsened since its election victory, with the $1.5 trillion economy struggling for momentum in non-mining sectors.
“The reality is that we are in challenging times,” , Finance Minister Mathias Cormann said in a Sky News interview yesterday. The new government has inherited “not just a bad position at the time of the election but a position that continues to deteriorate,” he said.
The coalition, which ousted Labor on Sept. 7, is pledging to cut red tape and lower taxes as a China-led mining investment boom crests. Prime Minister Tony Abbott’s government is grappling with rising unemployment and cooling growth as a strong currency hurts manufacturing and service industries.
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