Australia plans big spending COVID-19 pandemic measures, record debt
06 October, 2020
The Australian government on Tuesday (Oct 6) will reveal a large spending financial blueprint for another few years which will drive business investment and job creation while mending pandemic harm to the economy, the treasurer said.
The government is also likely to accrue record debt in the current fiscal year that ends on Jun 30, 2021, Treasurer Josh Frydenberg told reporters.
“I will construct our economic recovery intend to rebuild the Australian economy and secure Australia’s future,” he told reporters.
Budget plans usually delivered in-may were delayed this year due to the financial uncertainty created by the COVID-19 pandemic. The forecasts assume a COVID-19 vaccine can be available next twelve months.
“Our plan will create jobs. Our plan will generate opportunity. Our plan will drive investment. Our plan will grow the economy and guarantee the fundamental services Australians depend on,” Frydenberg said.
The gross annual budget is likely to include a wage subsidy to get unemployed young Australians back again to work. The federal government also hopes to bring forward planned income tax cuts.
“It rewards effort, encourages the energy of aspiration, but it addittionally encourages and causes greater monetary activity as people with tax relief spend more,” Frydenberg said.
The government has recently announced road and rail infrastructure projects worth AUD$7.5 billion (US$5.4 billion) will be brought forward to energise the economy.
The budget measures would concentrate on driving Australia’s unemployment rate below 6 % faster than in the aftermaths of previous recessions, Frydenberg said.
The latest jobless figures are for August when the rate was 6.8 per cent. The rate would be far higher if the federal government had not been paying employers a subsidy to keep staff in work.
Prior to the pandemic, the conservative government had likely to record Australia’s first budget surplus in 12 years in the fiscal year that ended on Jun 30 this year. Instead, Australia has sunk into its first recession in 28 years with spiraling debt.
Source: www.channelnewsasia.com
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