Overview Circulated by the Hon. Peter Costello, M.P., Treasurer of the Commonwealth of Australia, 14 May 2002. This document summarises the Commonwealth Budget, recent economic developments and the outlook for 2002-03, as presented in the Budget Papers.

Contents Overview The 2002-03 Budget The Australian Economy: Building on Strength as the World Recovers Intergenerational Report The 2002-03 Budget Budget Priorities Expenses and Revenue: Major Categories Strong Record in Reducing Net Debt The Australian Economy Business Investment Set to Drive Growth Economic Growth in Australia to Remain Strong in 2002-03 A Strengthening Labour Market Strong and Stable Terms of Trade Appendices Commonwealth Budget Aggregates Spending Initiatives in the 2002-03 Budget Detailed Economic Forecasts for 2002-03 Historical Budget and Net Debt Data

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Overview The 2002-03 Budget The 2002-03 Budget provides for an underlying cash surplus and lays the foundations for surpluses right across the forward estimates. It delivers the Government's election commitments and responds to the challenges of an uncertain international environment, particularly since the 11 September 2001 terrorist attacks in the United States.
a surplus budget		The Government is budgeting for a $2.1 billion surplus in 2002-03. Most countries in the OECD, including the United States and the United Kingdom, are expected to be in deficit in 2002 and 2003.
low government debt		Australia will have one of the lowest levels of government debt in the industrialised world in 2002-03. By the end of 2002-03 the Coalition Government will have reduced Labor's debt by $61 billion.
safeguarding Australia and delivering our commitments		The Budget provides for greater spending on defence and protecting the integrity of Australia's borders. Additional funding is provided to upgrade domestic security following the 11 September 2001 terrorist attacks in the United States. The Budget also delivers the Government's election commitments, including funding for the Baby Bonus, superannuation and aged care.
planning for future budget pressures		The Budget includes the first Intergenerational Report under the Charter of Budget Honesty. Over a 40 year time horizon, the report projects pressure on government finances because of growth in health, aged care and age pension spending. Forward planning is important to face the challenges of population ageing and increased costs of accessing the latest medical advancements.
Commonwealth Budget Balance