MYEFO: Greens Say Focus Should Be On How To Raise Revenue, Call For End To Panic On Debt

The Australian Greens have reacted to the release of the Mid-Year Economic and Fiscal Outlook (MYEFO) by calling for an end to the panic about debt in favour of a new focus on how to raise revenue to fund services and jobs.

Milne

“Now is not the time to be talking about spending restraint because of a panic on debt,” said Greens leader Senator Christine Milne.

“The old parties wasted the resources boom,” Milne said. “A serious look at raising revenue is necessary to address subdued unemployment, an ageing workforce and increased demand for services.”

  • Listen to Milne (12m)

Text of media release from the Australian Greens.

End panic on debt and let’s talk about revenue and jobs – Greens

Responding to the release of the Mid-Year Economic and Fiscal Outlook, Australian Greens Leader Christine Milne has warned against deep budget cuts and says the focus should now be on how we can raise revenue to spend on public services and the infrastructure of the future. [Read more…]


Opposition Reacts To MYEFO; Claims Hockey Is Softening Up Electorate For Budget Cuts

Shadow Treasurer Chris Bowen and Shadow Finance Minister Tony Burke have responded to the government’s release of the Mid-Year Economic and Fiscal Outlook.

Bowen said that MYEFO showed that $10.2 billion of the $17 billion blowout in this year’s deficit is down to decisions taken by the government since the election. The major component of this is a payment of $8.8 billion to the Reserve Bank to bolster its reserves.

Bowen

Bowen said: “Joe Hockey is softening up the Australian people. He’s preparing the ground for deep and brutal cuts come Budget time, cuts to come which will affect every Australian.”

Tony Burke said that the government had added $167 million a day to Australia’s deficit since the September election. [Read more…]


MYEFO: Budget Deficit Rises To $47.6bn And $123bn Over Four Years; Debt To Hit $667bn In A Decade

The Treasurer, Joe Hockey, has released the Mid-Year Economic and Fiscal Outlook (MYEFO) which shows the federal budget deficit will increase by $17.5 billion to $47.6 billion this year, with total deficits of $123 billion over the next four years.

The MYEFO forecasts gross debt to reach $667 billion in a decade and be around 26% of GDP in 2023-24. Net debt is expected to peak at 16.2% in 2018-19, the highest since 1996-97.

Hockey

Hockey released the MYEFO in an address the National Press Club in Canberra. It forecasts a budget deficit for the fiscal year 2014-15 of $33.9 billion and $24 billion in 2015-16. Whereas both the Coalition and the ALP said they would deliver a budget surplus in 2016-17, MYEFO forecasts a deficit of $17.7 billion.

Unemployment, currently 5.8%, is predicted to be 6% in June, rising to 6.25% for the next three years, adding $3.7 billion to the welfare bill. A blowout of $11.3 billion is forecast for the welfare budget. [Read more…]


Tony Abbott Responds To Mid-Year Budget Update

Tony Abbott has described the Mid-Year Economic and Fiscal Outlook as a “crisis mini-budget.”

Speaking at a joint press conference with Shadow Treasurer Joe Hockey and Shadow Finance Minister Andrew Robb, Abbott claimed there is now no buffer against international economic problems because of the incompetence of the government. [Read more…]


Swan Releases MYEFO: Budget Surplus Shaved

The Treasurer, Wayne Swan, has released the Mid-Year Economic and Fiscal Outlook (MYEFO). It forecasts an increased budget deficit for 2011-12 and a small surplus in 2012-13.

Key points from MYEFO:

  • 2011-12 budget deficit has increased to $37 billion from the budget forecast of $23 billion.
  • The budget surplus for 2012-13 has been downgraded from $3.5 billion to $1.5 billion.
  • Deteriorating economic conditions have cut $20 billion from revenue over the four-year forward estimates.
  • Additional savings of $11.5 billion over four years have been announced.
  • The baby bonus has been cut from $5400 to $5000.
  • A 2.5% efficiency dividend, on top of an existing 1.5%, will produce savings across government departments of $1.5 billion.
  • The federal and High Courts, and cultural institutions such as the Australian War Memorial have been been protected from cuts.
  • There will be a crackdown on living away from home tax concessions, an increase in the eligibility age for the dependent spouse offset.
  • Gross Domestic Product is now forecast to grow by 3.25%, down from 4.25%.
  • Unemployment is expected to be 5.5% in 2011-12 and 2012-13, slightly up on budget forecasts.

[Read more…]


Costello Releases Updated Budget Outlook, Compares Bartlett With Latham

The Federal Budget surplus is projected to hit $4.6 billion this year, according to the Treasurer, Peter Costello.

Releasing the Mid-Year Economic and Fiscal Outlook, Costello said the government expected to receive a net increase of $2 billion in tax revenues, most of this from increased company tax. Allowing for increased expenditure of $1 billion on the MedicarePlus package, pharmaceutical benefits, drought assistance and the commitment to the Solomon Islands, the budget surplus will increase from the budget forecast of $2.2 billiob to $4.6 billion.

Australia’s economic growth forecast has also been upgraded from 3.25 per cent to 3.75%, due mainly to an easing of the drought.

The Treasurer said Australia’s net debt was now $23 billion, down $73 billion since 1996. [Read more…]