Prime Minister Julia Gillard says there will be a $12 billion budget hole this financial year.
In a speech to the Per Capita think tank today, Gillard said: “The ‘bottom line for the Budget bottom line’ is this: the amount of tax revenue the Government has collected so far this financial year is already $7.5 billion less than was forecast last October.
“Treasury now estimates that this reduction will increase to around $12 billion by the end of the financial year.
“This unusually low revenue, which wasn’t forecast even a few months ago, creates a significant fiscal gap over the Budget period.”
Gillard said “every reasonable option” is on the table, “even options previously taken off the table”.
The government “will not cut to the bone” in next month’s budget.
She said: “In the Budget, the Government will do the right thing by the nation, the right thing for the long-term. We will save responsibly, even when that means spending less on things which are important and valuable. We will invest wisely for the future. No one will be singled out, the burden of our decisions will be shared across the whole Australian community.”
- Listen to Gillard’s speech (27m)
- Listen to Gillard answer questions (17m)
Text of Prime Minister Julia Gillard’s speech to Per Capita.
It’s a great sign of the growing recognition of Per Capita’s work that your Executive Director David has been in such good company at the international Policy Network’s Progressive Governance and Global Progress conference in Denmark.
Congratulations to you on the fine contribution Per Capita is making in the world of ideas.
With the Federal Budget just fifteen days away, I thank you for this opportunity to share with you the clearest possible picture of the purpose and context of our Budget deliberations.
This year’s Budget will be about a national challenge – and a national plan.
A challenge for Australia: to respond to the huge reductions in revenue growth over the next four years.
A plan for Australia: to make necessary investments in the nation’s future, to ensure that none of our people is left behind.
Tuesday 14 May will be no old-fashioned pre-election Budget night. [Read more...]