The forecast deficit for this year has been revised down by $7.4 billion, the Treasurer announces, as the economy recovers from the COVID-19 recession.
At the peak of the pandemic, Treasury was warning unemployment could hit 15 per cent.MYEFO includes billions in extra spending that the government is yet to announce, an indication it has budgeted for announcements it will make closer to the election.
However, the mid-year budget includes $16 billion in decisions taken but not yet announced, including $5.5 billion this financial year and $4.1 billion next year.MYEFO includes an extra $45.9 billion coming into government coffers this financial year.This brings with it a downgrading in the forecasted deficits. The government now expects the deficit in 2021-22 will be $99.2 billion, down from the $106.6 billion forecasted in May.
The government is selling the improved budget as thanks to its economic management skills, which it hopes will appeal to voters as the Coalition seeks a fourth term next year. MYEFO forecasts that by June 2025, an extra million people will be in work, an increase of 150,000 forecast in this year's budget.
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