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This document provides an overview of the Commonwealth Budget, recent economic developments and the outlook for 2001-02, as presented in the Budget Papers circulated by the Treasurer on 22 May 2001. This overview is presented in a shorter and easier to read format than the main Budget Papers.

Contents Overview The 2001-02 Budget The Australian economy: Growth to bounce back The 2001-02 Budget Budget Priorities Expenses and revenue - major categories The benefits of debt reduction The Australian Economy World growth slows from historical highs Economic growth in Australia to rebound in 2001-02 Solid export growth and a lower current account deficit The unemployment rate to stabilise Inflation to decline Maintaining strong productivity growth Appendices Commonwealth budget aggregates Spending initiatives in the 2001-02 Budget Detailed economic forecasts for 2001-02 Historical budget and net debt data Glossary

© Commonwealth of Australia 2001
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Overview

The 2001-02 Budget

The 2001-02 Budget provides for the Government's fifth consecutive cash surplus, the longest run of cash surpluses in almost 30 years. It delivers additional funding for national priority initiatives, including measures to provide increased support to older Australians, improve the welfare system and to improve the health and living standards of all Australians. Following a temporary economic slowdown in 2000-01, the significant tax reductions and new expenditure provided in the Budget will help support an early return to strong growth in the year ahead.

the Government's fifth cash surplus in a row	A cash surplus of $1.5 billion is expected in 2001-02 and further surpluses are expected in the following years.
net debt to fall further	This Budget continues to repay net debt. By the end of 2001-02, the Government will have repaid almost $60 billion of net debt since 1996-97 allowing interest savings of around $4 billion per year to be directed to other priorities.
initiatives in high priority areas	The Budget provides for initiatives in high priority areas including significant tax reductions, support for older Australians, welfare reform, health, rural and regional Australia, indigenous Australians, research and innovation, transport, sport and defence.
fiscal stimulus to support a return to strong growth	The Government's medium term fiscal strategy provides the scope for fiscal policy to respond to temporary slowdowns in the economy while maintaining fiscal discipline over time.

Commonwealth Budget Balance