This statement summarises the main budget aggregates for the Australian Government general government sector.
The fiscal outlook for Australia remains strong, with the Government forecasting an underlying cash surplus of $8.9 billion in 2005-06. Across the forward estimates, the Government has maintained the budget in a strong surplus position after providing for personal income tax cuts of $21.7 billion and a $3.6 billion welfare reform package.
The Government’s sound fiscal management will see further reductions to net debt across the forward years. The continued strengthening of net worth through strong surpluses and initiatives such as the Future Fund leaves government finances well placed to deal with the medium-term fiscal pressures projected in the Productivity Commission’s recent report on the Economic Implications of an Ageing Australia.
This Budget provides for around $16 billion to be allocated to the Future Fund in 2005-06.