Australian PM works to sell harsh budget as ‘pain with a purpose’

Australian Prime Minister Tony Abbott worked on Tuesday to sell his government’s first budget as one that will be painful but crucial for the nation’s future, as he braces for a voter backlash.

The conservative leader argues that there must be tough decisions or the budget will be in deficit for the next decade as the country confronts a slowing growth rate and unemployment near 6 per cent.

Australia’s budget deficit for the 2013/14 financial year is forecast to have ballooned to A$47 billion (HK$341 billion), with fiscal deficits projected through to 2016/17.

To counter this, Treasurer Joe Hockey is widely expected to hand down a harsh budget that includes a levy on high income earners, a future rise in the pension age to 70, a fee for visiting the doctor and big cuts to the public service.

Abbott admitted some of the measures will not be popular, but he said they were necessary.

“Yes, there’s got to be short-term pain, but it’s pain with a purpose,” he told Macquarie Radio ahead of the budget release Tuesday evening.

“This is a problem-solving budget because we do have a very serious problem of debt and deficit, stretching as far as the eye can see. But it’s also a nation-building budget.”

As well as cuts that will hit the pockets of every Australian, the budget is expected to see the country’s biggest ever spending on infrastructure, with new roads part-funded by an increase in the excise on petrol.