The Forum > General Discussion > Half a billion dollars stashed for poll spend
Half a billion dollars stashed for poll spend
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The Gillard government has stashed away a ''war chest'' of nearly half a billion dollars in secret projects to be announced before the election.
In Tuesday's budget, Treasurer Wayne Swan listed a line item of $463.9 million as "decisions taken but not yet announced".
Deloitte Access Economics director Chris Richardson said Australians should expect to see the money spent on a range of pork barrelling campaign announcements.
"Yes, it is a war chest and they're holding back a bit of money here that will be announced before the election,'' he said.
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In last year's budget papers, the same line item amounted to $119.4million. Under questioning Mr Swan denied it was an election war chest and said there were reasons for the money to be listed that way.
"Some of them can be commercial matters in confidence," he said.
"That's not a large amount of money in terms of decisions taken and not announced."
Mr Swan's office subsequently suggested the measure could include defence contracts and other matters under negotiation.
But Mr Richardson said the money would be earmarked mostly for positive announcements designed to help the government retain office.
He said while some of what Mr Swan was saying about commercial in confidence matters could be true, much of the money would likely be targeted for pre-election spending.
"That money will get spent where the electoral margin is at its tightest," he said.
Another independent economic forecaster, Macroeconomics, agreed the explanation for ''decisions taken but not yet announced'' was simple.
"That's election spending," said Macroeconomics budget and forecasting director Stephen Anthony.
Mr Richardson said election spending would exceed half a billion dollars, but won't reach the "stunning amounts" of money thrown at the 2007 election.
However, he warned the spending would need to be announced before the government entered caretaker mode or ''technically the Coalition can spend that money too".
The Coalition's spokesman for scrutiny and government waste, Jamie Briggs, said the amount was suspiciously high.