Federal Treasurer Josh Frydenberg handed down the 2021 Budget in what can best be described as a pre-election budget for the ages.
Absent the surprise tax cuts, and with the Reserve Bank of Australia locking in near 0% interest rates for at least the next few years, Frydenberg and the Coalition were able to deliver a huge and very much big spending Labour-like budget which will very much frustrate the opposition leading into what could be a surprise early election year.
The deficit for 2020-21 at $161 billion is almost $53 billion better than forecast in last year’s delayed 6th October Budget. Key areas of focus were tax cuts, Covid-19 measures, job creation, aged care, mental health, childcare, national disability insurance scheme, and infrastructure.
Federal Treasurer Josh Frydenberg handed down the 2021 Budget in what can best be described as a pre-election budget for the ages. Absent the surprise tax cuts, and with the Reserve Bank of Australia locking in near 0% interest rates for at least the next few years, Frydenberg and the Coalition were able to deliver a huge and very much big spending Labour-like budget which will very much frustrate the opposition leading into what could be a surprise early election year.
The deficit for 2020-21 at $161 billion is almost $53 billion better than forecast in last year’s delayed 6th October Budget. Whilst the forward estimates have the deficit falling again next year, deficits are predicted to continue for the next decade, which is a far contrast to the Coalition’s usual stance of fiscal responsibility. It’s also worth noting that the federal government net debt will peak at almost $1 trillion by 2024-25, a very big number, but something that’s likely to be glossed over in the context of very low rates, central bank money printing, and the much larger indebtedness of other developed countries.
Key areas of focus were tax cuts, Covid-19 measures, job creation, aged care, mental health, childcare, national disability insurance scheme, and infrastructure.