Hockey: Australian Budget on a Credible Trajectory Back to Surplus

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Hockey: Australian Budget on a Credible Trajectory Back to Surplus

Australia’s government budget deficit will undershoot market forecasts and keep improving over time, Treasurer Joe Hockey said – just hours before delivering his annual policy package.  Speaking to the media, Hockey said the market was forecasting a shortfall of around A$40-A$41 billion but the actual deficit would “beat that”.

Hockey said the government had been forced over the past 18 months to write off A$90 billion of expected revenue, partly due to a slide in prices for iron ore, the country’s biggest export earner.  “Yet we are still on a credible trajectory back to surplus,” said Hockey.

Prime Minister Tony Abbott’s conservative government is taking a far more cautious approach to their second budget after last year’s attempt at slashing spending and welfare proved politically disastrous.  This time all the talk is of a “fair” budget aimed at strengthening the economy and ensuring the “integrity” of Australia’s tax system.

Reuters

Stuart McPhee
Stuart McPhee

Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.