Appendix B
Assessment against the fiscal target
In this Budget, the Government is delivering on its fiscal strategy despite significant challenges posed by the recent natural disasters.
The table shows the net savings achieved since the Mid‑Year Economic and Fiscal Outlook 2010‑11. The net effect of policy decisions takes into account amounts that have previously been provided for in the Contingency Reserve (and as a result have no net impact on the budget position) and which principally relate to Official Development Assistance.
The savings in the Budget more than cover the $4.4 billion in variations in payments related to the natural disasters, primarily from payments under the Natural Disaster Relief and Recovery Arrangements (NDRRA).
- (a) On an underlying cash balance basis
- (b) The Cleaner Car Rebate save is an estimates variation, but is included in this table because it is a decision not to proceed with an election commitment.
- (c) On 27 January 2011, the Government also announced reductions in spending of $244 million, which are reflected in estimates variations which improve the budget position.