This Budget supports jobs today by investing in the infrastructure Australia needs for tomorrow, while making the hard choices necessary to chart the course back to surplus.
Most challenging global economic conditions since the Great Depression
The global economy is experiencing the worst recession since the Great Depression, which has dragged the Australian economy into recession.
Real GDP is expected to contract slightly in 2009‑10. This contraction is expected to be milder than almost any other advanced economy. An economic recovery is expected to gather pace from early 2010. The downturn will impact significantly on jobs, with employment contracting over 2009‑10, and gradually growing in late 2010.
Stimulus and nation building investment
This Budget supports jobs now, and invests in the future, to ensure the economy is well placed to make the most of the global recovery.
The centrepiece of the Budget is a significant program of investment in nation building infrastructure, including roads, metro rail, ports, universities and energy efficiency.
The net measures in the Budget raise the level of GDP by ¾ of a per cent in 2009‑10. These measures will support the housing sector, jobs and small business.
Making the hard decisions
The Government has made the hard decisions required to deliver a fairer pension system and put the Budget on a sustainable footing.
Government programs have been better targeted, to ensure support is provided to those who need it most.
Delivering on the deficit exit strategy
Projected budget deficits have increased mainly as a result of the impact of the global recession on revenues. The Government’s strategy is expected to see the budget return to surplus in 2015‑16.
Major economic parameters(a)