Politics with Michelle Grattan: Treasurer Josh Frydenberg on promising budget figures.
Michelle Grattan discusses MYEFO with Treasurer Josh Frydenberg.
The economic recovery is looking more and more V-shaped, the budget recovery will be much slower.
The federal government has announced A$850 million for 10,000 additional home-care packages, as part of $1 billion for aged care. Here’s why that’s not nearly enough.
The government will inject a further $1 billion into aged care, most of it for home care packages, in Thursday’s budget update.
He is trying to transition out of stage one while drawing up stage three.
Wes Mountain/The Conversation
I’d hoped to keep my absence nice and private, especially from those quiet Australians fighting fires. Regrettably, despite best efforts, my press office wasn’t able to keep a lid on the story.
The forecast for Australia’s economic growth in 2019-20 has been cut by 0.25%, and the projected surplus for this financial year slashed by A$2.1 billion.
Politics with Michelle Grattan: Mathias Cormann and Jim Chalmers on the mid-year budget update.
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The figures indicate a worsening economy, but the government has sought to put a positive spin on the situation, saying the Australian economy is showing resilience.
On one hand, we’re still able to forecast a surplus. On the other, conditions are deteriorating. Treasurer Frydenberg and Finance Minister Cormann deliver the news.
MYEFO contains a long-overdue admission: that low wage growth is the new normal. It’ll take extraordinary spending restraint to make the surplus forecasts stick.
If all goes well, Treasurer Josh Frydenberg might just deliver his tiny projected surpluses, but it isn’t clear why he should.
The treasurer has pulled out all stops to continue to forecast budget surpluses, but they are low, and don’t take account of several likely costs.
The update has slashed growth and surplus forecasts, as the economy is buffeted by global and domestic pressures.
The projected surplus has been revised down from A$7.1 billion at budget time to $5 billion for this financial year.
The shockwaves of this cut will be felt for years to come at Australian universities.
With a budget surplus in sight, it makes no sense to cut funding from Australia’s research capacity.
Neither Treasurer Josh Frydenberg nor Finance Minister Mathias Cormann would commit to banking the proceeds of improved economic circumstances.
When assessed by the government’s own rules, MYEFO fails. The government is spending the latest revenue windfall even though it promised not to.
Prime Minister Scott Morrison puts a gift under the Salvation Army giving tree at his office in parliament house.
The budget line known as “decisions taken but not yet announced” points to $9 billion of unannounced tax cuts.
Shorten’s message is that Labor is ready for office.
The government is worried about a conference which is a highly managed affair where divisions are being contained and participants have their eyes firmly on the prize of Labor winning power next year.
As happened during the last budget boom, the government will spend it (quite likely on tax cuts) leaving little for when things turn down down the track.
History suggests the government will spend most of the extra $10 billion per year that the MYEFO will reveal on Monday. The only problem is, those riches won’t last.
The government is proposing to save A$2.2 billion on education over the next four years, which will hit students the hardest.
The cuts to higher education funding are more about making savings than improving higher education, and would be extremely hard to change in the future.
MYEFO leaves Treasurer Scott Morrison with the difficult task of managing Australia through a period of both sluggish GDP growth and a persistent budget deficit.
Next year GDP will grow at the second-slowest rate in 16 years, according to MYEFO. This has big implications for unemployment and the deficit.
How does Australia’s economic growth shape up against the G7 countries?
AAP Image/Joe Castro
Ahead of the Mid Year Economic and Fiscal Outlook, minister for defence industries Christopher Pyne said a lot of jobs were created in 2016 and Australia has the highest growth rate in the G7. Is that true?
The world economy is inextricably linked with the US.
A lot has changed in the global economy since the Federal Budget 2016.
Federal Treasurer Scott Morrison will deliver the Mid Year Economic and Fiscal Outlook next week.
The US Fed meets expectations for a rate cut, Australia’s unemployment rate heads upwards again, and all eyes look to the mid year budget update.