The government budgets for the unannounced because it doesn’t want its projections to “blow out” during the campaign.This gives us an idea of how much, but not what, is in store.
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.
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.
The Conversation
Politics with Michelle Grattan: Mathias Cormann and Jim Chalmers on the mid-year budget update.
The Conversation, CC BY29.7 MB(download)
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.
Lukas Coch/AAP
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.
Lukas Coch/AAP
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.
Mick Tsikas/AAP
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.
Lukas Coch/AAP
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.