Business Daily Media

cuts, spends, and everything you need to know at a glance

  • Written by Michael Hopkin, Deputy Chief of Staff, The Conversation
cuts, spends, and everything you need to know at a glance

With rising inflation, a war in Europe affecting global fuel costs, and ongoing supply strain issues, this year’s budget is shaped not just by the upcoming election but a growing cry in the community about the cost of living.

But despite some significant multi-billion dollar spends within the next six months, the deficit is predicted to shrink considerably from last year (and the shock of 2020) to just $79.8 billion – largely due to factors out of the government’s control.

While GDP surged as we began to see a way out of the COVID tunnel, the government forecasts that this will slowly consolidate to around about our pre-pandemic levels, sitting at 2.5% for the remainder of the forward estimates.

Unlike GDP, unemployment is forecast to head further south – and remain there for the majority of the next four years.

And the predicted further increase in overall employment has flown on effects.

Despite an international climate of increasing inflation, and years of wage stagnation, the government is optimistic that the wage price index will overtake the consumer price index by the 2023-24 budget.

Despite a clear explosion in spending in this election year (and amid those cost of living woes in the electorate), the government expects to rein in payments in the coming years, as receipts consolidate.

Josh Frydenberg noted in his address to the Press Gallery that the budget now forecasts gross debt to peak four years earlier than in previous estimates – though this is still a far cry from the “Back in Black” predictions of his first budget in 2019.

So what are the major spends – and few cuts – of this big spending election budget?

While a number of them – like the fuel excise cut and almost no mention of climate change as NSW and Queensland recover from another disastrous summer – are definitely against the recommendations of Australia’s leading economists[1], it remains to be seen how they will affect the election.

References

  1. ^ Australia’s leading economists (theconversation.com)

Authors: Michael Hopkin, Deputy Chief of Staff, The Conversation

Read more https://theconversation.com/a-cost-of-living-budget-cuts-spends-and-everything-you-need-to-know-at-a-glance-180124

Business Reports

AirRobe and THE ICONIC Celebrate A Sustainable Milestone

AirRobe and THE ICONIC have unveiled a market-first feature that allows customers to add past orders made on THE ICONIC to their AirRobe Circular Wardrobe™ in one click.  The new ‘add past orders’ feature builds on THE I...

YouGov appoint Laura Robbie as CEO of the Asia Pacific region

A world of new opportunities  Market research and data analytics company YouGov is pleased to announce the appointment of Laura Robbie as CEO of the Asia Pacific region.  Miss Robbie previously held the role of Managing Di...

How to Sharpen Your App Development Skills

Mobile application development is a skill that you should take seriously. It's not the easiest task in the world, and it takes more than just technical know-how to be successful. If you want your app to succeed, you have to shar...

The four markers that define Australia’s best-in-class workplaces

What is it that has aided one-third of employers not to experience difficulties with recruitment in the current market, writes Servicely’s founder and CEO Dion Williams. We’re used to living with impatience. The scant few...

3 Tips For Balancing Business And Family

Running a business while also simultaneously being the head of the family can be a stressful challenge to deal with, but so many people out there do it. If you are living this kind of lifestyle and feel like you have too much go...

RBNZ Survey: majority of experts believe inflation has hit its peak

While inflation has likely hit its peak, homeowners should brace for further hikes to their mortgage repayments, according to a new Finder poll.  In this month’s Finder RBNZ Official Cash Rate Survey, 15 experts and econom...

Web Busters - Break into local search

WebBusters.com.au