Business Daily Media
WORKSPACE

.

Business News

Budget deficit comes in at $10.1 billion, in boost for early return to surplus

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra
Budget deficit comes in at $10.1 billion, in boost for early return to surplus

The budget outcome for 2017-18 shows a deficit of A$10.1 billion – dramatically less than expected in May, and just 0.6% of GDP.

In this year’s May budget, a mere four months ago, the outcome for the last financial year was forecast to be just over A$18 billion, already revised well down on the more than A$29 billion estimate in the 2017 budget.

The drivers of the better-than-anticipated result were stronger revenue and lower spending than earlier expected.

Treasurer Josh Frydenberg and Finance Minister Mathias Corman said in a statement: “At A$10.1 billion, just 0.6 per cent of gross domestic product (GDP), the underlying cash deficit is the smallest in ten years.

"Stronger economic growth and much stronger employment growth than anticipated at the time of the 2017-18 budget have driven increases in personal income tax and company tax receipts, with total receipts $13.4 billion higher than expected at the time of the budget.

"Total payments were A$6.9 billion lower than forecast at budget time, including as a result of lower welfare payments with more Australians in paid work. Welfare dependency for working age Australians is now at its lowest level in 25 years and in 2017-18, there were 90,000 fewer working age Australians on welfare,” they said.

“Real GDP in 2017-18 was stronger than anticipated in the 2017-18 budget.”

Last week Standard & Poor’s ratings agency reaffirmed Australia’s triple A credit rating. Frydenberg said Australia was one of only 10 countries with a AAA credit rating from the three major agencies.

He told a news conference that the budget outcome confirmed the budget was on the path back to balance in 2019-20.

The mid-year budget update will come in December, with the revisions at that time setting the scene for the run into the election a few months later, with the government making economic and fiscal management a key plank in its campaign.

Shadow treasurer Chris Bowen said the final budget outcome “shows the deficit came in almost four times worse than forecast in the Liberal Party’s first budget. This is after the Liberal Party’s massive cuts to schools, hospitals and the pension.”

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/budget-deficit-comes-in-at-10-1-billion-in-boost-for-early-return-to-surplus-103836

Business Daily Media Business Development

How Glamping Impacts the Quality of Your Life

Glamping and being outside can improve the quality of your life in a variety of ways. Glamping can keep you alive for a long time and also offer a healthier life. There are numerous addi...

Briony Watts - avatar Briony Watts

SMEs key to driving Australia’s business travel recovery

Business travel accounts for a significant portion of Australia’s travel sector and contributes to the local economy. Since the start of the pandemic, the SME sector has been greatly i...

Tom Walley, the General Manager at Corporate Traveller Australia - avatar Tom Walley, the General Manager at Corporate Traveller Australia

The Toughest Parts of Being a Travel Nurse

Have you ever wanted to be a travel nurse? Just travel the country working on short-term contracts with hospitals and other medical institutions while also exploring some of the greatest...

Business Daily Media - avatar Business Daily Media

7 things businesses can do now, to recover quickly after lockdown

A proportion of businesses that are still operating healthily in the current lockdown may have slowed their pace as they wait for the re-opening. An Australian business leader, however, ...

Business Daily Media - avatar Business Daily Media

Writers Wanted



NewsServices.com

Content & Technology Connecting Global Audiences

More Information - Less Opinion