Business Daily Media

what you need to know about the budget at a glance

  • Written by Alexandra Hansen, Deputy Editor and Chief of Staff, The Conversation
what you need to know about the budget at a glance

After twenty years of rhetoric from both sides of politics focusing on getting back to surplus, this year’s budget continues pandemic spending in the hope of getting the economy back on track as the pandemic starts to settle.

The projected deficit is $161 billion for 2021-22, but rather than tackling this in the next four years, the government’s focus is instead on payments and long-term serviceable debt.

The government is projecting a bump in real GDP growth in the next financial year, before growth settles again over the near future.

Part of the reason the government can afford to keep spending high is the low cost of international debt. This means that while net debt will continue to increase beyond the next four years the budget estimates cover, net interest payments should remain low.

And another major factor in the budget’s performance – despite the big spending – is the impact of a very high iron ore price, in the midst of a global pandemic.

The chart below shows the difference between policy decisions and other factors, generally beyond its control.

With a major focus on business and infrastructure spending to revive the economy, extensions to tax benefits and announced packages for childcare, there are many spending announcements in this year’s budget and very few cuts or savings.

Read more: Frydenberg spends the budget bounty to drive unemployment down to new lows[1]

The difference is so great that we have drawn out some of the major spending announcements and included all significant cuts in our headline figures for this year’s budget.

Authors: Alexandra Hansen, Deputy Editor and Chief of Staff, The Conversation

Read more https://theconversation.com/cuts-spends-debt-what-you-need-to-know-about-the-budget-at-a-glance-159226

Business Reports

Why Patagonia's purpose-driven business model is unlikely to spread

Patagonia has always sought to limit its environmental harm.Budrul Chukrut/SOPA Images/LightRocket via Getty ImagesPatagonia founder Yvon Chouinard, his wife, Malinda, and their two adult children no longer own the outdoor gear an...

Why does money exist?

Cash is pretty convenient.Dilok Klaisataporn/EyeEm via Getty ImagesCurious Kids is a series for children of all ages. If you have a question you’d like an expert to answer, send it to curiouskidsus@theconversation.com.Why do...

Castellum is among the first to receive NollCO2 certification

The Korsningen block project has now been completed, and Castellum is one of the first companies in the Nordics to receive a NollCO2 (ZeroCO2) certification. The Swedish Police Authority, the tenant in the project, has...

Minomic records breakthrough commercial sale in the US

Australian diagnostics company Minomic International Ltd (Minomic) is pleased to announce that their lead product, MiCheck® Prostate,1 has recorded its initial commercial sales in the US, the world’s largest healthcare mark...

Corporate Traveller and Rex Airlines partnership a game-changer for SMEs

In a move that demonstrates a strong and game-changing commitment to the Australian SME sector, Flight Centre Travel Group’s flagship SME business, Corporate Traveller, has partnered with Rex Airlines, Australia’s larges...

5 Ways to stay germ free on a plane

In pre-Covid days, no one gave much thought to their health when travelling, but nowadays, maintaining good hygiene while travelling has never been more important.  If you have ever had the misfortune of sitting on a plane and...

Web Busters - Break into local search

WebBusters.com.au