Prime Minister Tony Abbott with the Federal Member for Mayo, Jamie Briggs, in Adelaide on Friday. Photo: AAP
The independent Parliamentary Budget Office has called into question claims health spending is spiralling out of control, noting government spending is projected to grow in line with the economy over the next decade and that health will account for only a small amount to that growth.
The PBO projected government spending would climb from $384 billion to $682 billion over the coming decade and warned that “elevated community expectations are likely to put ongoing pressure on governments to increase discretionary spending on major programs over the medium term”.
The PBO report also found spending on medical benefits accounts for just 1.8 per cent of the projected growth in government spending over the next decade, while spending on public hospitals accounts for just 1.4 per cent.
In contrast, defence spending accounts for 3.2 per cent, the fourth-biggest contributor to increased government spending after the GST transfers to the states, the National Disability Insurance Scheme and the age pension.