Money CHART: How Australia's budget deficit is returning to a surplus

07:57  09 may  2018
07:57  09 may  2018 Source:   businessinsider.com.au

Victorian budget 2018: What you need to know

  Victorian budget 2018: What you need to know Mental health and infrastructure spending are front and centre of this year’s Victorian state budget released today by Treasurer Tim Pallas. The budget, which promises to “get things done,” will also deliver a $1.4 billion surplus.“It’s a dazzling day for Victoria,” Mr Pallas said, adding the budget is about making the lives of people at every corner of the state easier. Health The government is making a record investment in mental health, with $705 million to be dedicated to boosting support for those in need.

When the Federal budget is in surplus , the Government debates not only how much of the surplus to invest in new. Chart 2–2. National Budgeting . Returning the Budget to Surplus . Surplus (+)/ deficit (-) in billions of dollars.

“It? s the economy, stupid.”. The battle cry of Bill Clinton? s 1992 presidential campaign has been recycled to explain how a 0 billion budget deficit has been transformed into a 0 billion surplus that is expected to quadruple in the decade ahead.

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Treasurer Scott Morrison’s forecasts show the budget on track to return to balance. 

The underlying cash deficit of $18.2 billion this financial year and $14.5 billion forecast in 2018 19 are the smallest since the GFC.

The underlying cash balance is forecast to return to balance in 2019-20 at $2.2 billion, before increasing to a projected surplus of $11 billion in 2020-21 and $16.6 billion in 2021 22.

Comment: The question Scott Morrison will not answer

  Comment: The question Scott Morrison will not answer There is one big question Scott Morrison does not want to answer about the tax cuts he will reveal on Tuesday night. Will the government honour its rule of allowing any improvements in tax revenue to be “banked” on the budget bottom line?This is the rule imposed after the global financial crisis to guard against political decisions that spend any revenue gains that are otherwise needed to produce a surplus. The question goes to the heart of the debate on whether the country can afford the new income tax cuts.

Governments often release information about their budget for the benefit of interested members of the public, and it is possible to find charts which show government surplus over time. The opposite of a budget surplus is a budget deficit , and most people, organizations

* Speculation government could announce quicker return to surplus . In the 12 months to March, Australia ’ s budget deficit shrank to A billion, or around 0.8 percent of GDP, the smallest annual shortfall for nine years, official data shows.

The return to surplus in 2020-21 and continuing projected surpluses will enable a reduction in debt. 

Net debt as a share of GDP is expected to peak at 18.6% of GDP in 2017-18 and is projected to fall to 14.7% by 2021-22.

Gross debt will peak in 2019-20 at less than 30% of GDP. 

a screenshot of a cell phone © Provided by Business Insider Inc After the budget returns to balance in 2019-20, a surplus of $11 billion is projected in 2020-21.

These Budget surpluses are projected to continue, building to a projected surplus of more than 1% of GDP by 2026-27.

Budget papers says better revenue collection means a saving on average of $2.7 billion per year on interest payments. 

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WA budget 2018: Households cop big fee hikes to get finances back on track .
The McGowan Government has used its second budget to argue its case for getting the state's finances back on track, revealing a significant improvement in forecasts while slugging households with big hikes in fees and charges. Treasurer Ben Wyatt used his second state budget to confirm increases to fees and charges that will cost the average household nearly $300 per year, headlined by a 7 per cent rise in power prices.Having promised a "no frills" budget, the Government locked in some money for its Metronet plans but committed little in the way of major new spending pledges.

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