12 May The 2021-22 Australian Budget – spending the growth windfall
Key Points:
- The Government now expects the Federal budget deficit to peak at $161bn this financial year (down from $214bn in October’s Budget) and fall to $107bn in 2021-22.
- The windfall to the budget from stronger growth is being spent on extra stimulus. Return to budget surplus looks more than a decade away.
- Key measures include more spending on aged care, childcare, infrastructure, investment tax breaks and more help for home buyers.
- Avoiding fiscal austerity and focussing on growing the economy is the right thing to do at present.
