20 Jan 2011

Federal govt under pressure to ditch surplus timetable

10:25 am on 20 January 2011

The Australian government is under renewed pressure to abandon its timetable for surplus in the aftermath of the Queensland floods.

The ABC reports some business groups are pushing the Government to ditch its promise to deliver a surplus in 2012/13, arguing it should focus on flood reconstruction.

Prime Minister Julia Gillard says the Government can rebuild and meet its target if it makes tough choices in the Budget.

But Independent Senator Nick Xenophon says there is no point slashing spending now circumstances have changed.

"I'm not sure why the government would want to put itself in an economic straight jacket," he said.

Independent MP Tony Windsor also says the government should not obsess over a surplus.

"There's nothing wrong with being in deficit," he said.