OZ Annual Budget

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An honorable member of the Coffee Shop Has Just Posted the Following:

Treasurer Scott Morrison forecast a A$37.1 billion ($28 billion) deficit in the 12 months through June 2017, wider than he predicted six months ago. His plan for growth: cut company taxes, boost infrastructure spending and provide income-tax relief. That’s assuming he remains in office following an expected July 2 election.


Inflation Focus

“I think there’s a number of factors” in the RBA’s decision to cut rates, Morrison said in an interview with Bloomberg Television. “They’re all pretty much focused on the inflation side of things. They don’t, I believe, relate to any exchange rate issues. Glenn Stevens is doing his job, I’m doing mine.”
The RBA chief said Tuesday that the labor market, where hiring reached a record late last year and unemployment fell to a 2 1/2-year low in March, has shown “more mixed” indicators lately. Morrison’s budget forecast the jobless rate to drop to
5.5 percent next fiscal year from the current 5.7 percent, with the economy growing 2 1/2 percent over the period.

Net debt, meanwhile, is predicted to climb to a record 18.9 percent of gross domestic product in the fiscal year through June 2017, and rise again to 19.2 percent in the ensuing 12 months. While that compares favorably with the International Monetary Fund’s 69.3 percent forecast for Europe this year, the trajectory of Australia’s is worse.


2021 Surplus

Still, the government says it will balance the books. Morrison reiterated the budget will return to surplus by 2021 from a forecast deficit of 2.2 percent of GDP next fiscal year. In the short-term, Morrison plans to pay for Tuesday’s economic program through savings measures as well as higher taxes on tobacco and wealthy people’s pension plans.


https://www.bloomberg.com/news/artic...ttress-economy


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