Ensuring that the Government
lives within its means
Ensuring Government lives within its means
The Government is taking further action to return the Budget to balance
A strong fiscal outlook provides the foundation for a growing, thriving economy. Putting our nation on a sustainable financial path creates a positive environment for growth, opportunity, and prosperity.
This is in sharp contrast to high debt levels in other countries where governments are required to spend more of their budgets on interest costs.
To ensure the Budget supports growth that secures more and better paying jobs, the Government is maintaining a credible path of diminishing deficits each year, leading to a projected return to balance in 2020-21.
Since the last election, the Government has legislated more than $25 billion in Budget repair measures.
Delaying action will make it more difficult to protect the essential services that Australians rely on.
In order to protect these essential services, the Government is making sensible decisions to keep spending under control, while creating the conditions for a stronger economy that will result in increased revenues.
The Government’s continuing focus on budget repair demonstrates its commitment to maintaining our AAA credit rating.
Return to balance in 2020-21
The projected return to balance in 2020-21 and continuing projected surpluses over the medium term will enable a reduction in debt. This will place Australia in a better position to withstand any future economic downturns. It will reduce the need to increase taxes or cut back on essential services if there comes a time when Government action is needed to support economic activity.
By living within its means the Government will not burden future generations with debt from today’s everyday spending. From 2018-19, debt will not be required to fund recurrent spending for the first time since the GFC. This will make Australia stronger and more resilient to the shocks that may come its way.