Australian Treasurer Wayne Swan said Monday that to withdraw the economic stimulus now would threaten the nation's recovery.

"Economic stimulus is the only reason why Australia is one of two of the advanced economies that grew in the March quarter," Swan told reporters.

"To withdraw the stimulus now would simply knee-cap the recovery and lead to much higher unemployment," he said.

"That is the advice the government has received from the Treasury."

"The economic stimulus at the moment is vital to supporting business to keep customers coming through the door," Swan said.

"Of course the stimulus is temporary and is targeted and it is designed to be withdrawn from year's end as the economy recovers."

Meanwhile, Opposition Treasurer Joe Hockey rejected Swan's assessment and reiterated his call for the spending to be cut back.

"There will always be some rent seekers around the place who are keen to get more handouts from the government, but ultimately this is borrowed money," Hockey said.

"That means higher interest rates and higher taxes for everyday Australians."

(Xinhua News Agency August 31, 2009)