BREAKING: The Morrison government has sliced $2 billion off this year's budget surplus and cut its employment forecasts, predicting jobs growth would be 'moderate' over the coming years.
The Morrison government has abandoned its goal of eliminating net debt by the end of the next decade, as growing economic headwinds force it to slice $2 billion off this year's forecast surplus.
The economy will now not hit Treasury's forecast of the natural rate of unemployment of five per cent until 2021-2022, pushing any predicted return to normal levels of wage growth of above three per cent out until 2022.Alex Ellinghausen The target was used by Finance Minister Mathias Cormann in April to pledge the Morrison government was "moving to the second stage of our plan" by eliminating net debt by 2030 after delivering a decade of surpluses. That key milestone disappeared on Monday.Overall economic growth forecasts have been cut from 2.75 per cent to 2.25 per cent for this year, while Treasury remains optimistic it will return to trend levels by 2022-23.
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