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Budget ‘back in the black and back on track’ for 2019-20
The federal government is touting a $690 million deficit and its 0.0 per cent representation of gross domestic product (GDP) as a return to balance for the Australian budget.
Budget ‘back in the black and back on track’ for 2019-20
The federal government is touting a $690 million deficit and its 0.0 per cent representation of gross domestic product (GDP) as a return to balance for the Australian budget.
In a joint statement from the Commonwealth Treasurer and the Minister for Finance, it was emphasised that the budget had been pulled back to a balance for the first time in 11 years, since 2007-08.
According to the Hon Josh Frydenberg MP, the underlying cash balance in the final budget outcome for the 2018-19 financial year is $13.8 billion better than estimated at the time of the 2018-19 budget.
“A growing economy with more jobs and stronger terms of trade than anticipated at the time of the 2018-19 budget has driven total receipts $11.5 billion higher, with payments $6.6 billion lower than expected at the time of the 2018-19 budget,” the statement read.
The Treasurer highlighted how employment growth “far exceeded expectations” from when the budget was first delivered.
Mr Frydenberg reported that “with about 300,000 additional jobs created in 2018-19, employment grew by 2.6 per cent, well above the 1.5 per cent growth forecast in the 2018-19 budget”.
More than eight out of 10 jobs created in the last year were in full-time employment, with the proportion of those of working age in welfare now at its lowest level in 30 years, according to reports.
It meant individual tax receipts were up by $5.7 billion compared to the 2018-19 budget forecast, with the ministers noting “more jobs drive increases in revenue as well as lower payments”.
“Our strong fiscal management has put the budget on a sustainable trajectory, ensuring that we can guarantee the essential services that Australians rely on,” the statement continued.
It was indicated that the government had kept spending as a share of GDP in 2018-19 at 24.6 per cent of GDP, below the long-run average of 24.7 per cent for the second consecutive year, while also providing record levels of investment in essential services like hospitals, schools and aged care.
According to the Treasurer, “these outcomes demonstrate that the government’s economic plan is working and confirm that the budget will be back in the black and back on track for the 2019-20 year”.
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