The Government has delivered on its commitment to achieve an underlying cash surplus in 2008‑09 of at least 1.5 per cent of GDP without relying on upward revisions to tax receipts. All tax receipt revisions since the Pre‑Election Economic and Fiscal Outlook 2007 have been saved, adding to the 1.5 per cent starting point to achieve a surplus of 1.8 per cent of GDP.
In cash terms, all new spending for 2008‑09, including the Government's election commitments since the Pre‑Election Economic and Fiscal Outlook 2007, has been more than offset by savings. For 2008‑09, the Government has identified gross savings of $7.3 billion, of which $1.6 billion are election commitments. These savings offset new policy decisions of $5.3 billion.
Excluding new tax measures and associated GST payments to the States, the Government has offset all new payment spending of $5.3 billion in 2008‑09 with spending cuts of $5.3 billion.