Australia 'may never repay stimulus debt'
Posted 19 minutes ago
Former federal treasurer Peter Costello says it is possible Australia may never be able to pay back money the Government is borrowing to fund its stimulus packages.
The Government has approval to borrow up to $200 billion but has not ruled out needing more.
Mr Costello says the public needs to remember the money has to be repaid and that will mean higher taxes.
"It took 10 years to pay off $100 [billion]. How long will it take to pay off $200 billion?" he said.
"It could take 20 years if it's ever done. It could take a very long period of time - it might be longer than our life-times."
Mr Costello said the stimulus packages were poorly designed and it was inevitable taxes would rise to pay for the packages.
"A debt which will mean that taxes, for as long as we have that interest payment on that bill, will be necessarily higher," he said.
"A debt which we are bequeathing to our children by the day."