The Australian Federal Budget in May improved significantly due to unusually high commodity prices in Australia.
of Latest monthly financial statements The underlying budget deficit, announced by the Treasury, reaches $ 33.4 billion (US $ 23.11 billion) a month, far less than the $ 60.5 billion previously predicted in the revised budget from 2021 to 2022.
“Obviously, we want to embrace those numbers strongly,” Finance Minister Jim Chalmers told ABC’s Insider Program.
“But what they don’t consider is commodity price volatility. I think iron ore fell 12% last week, which impacts the budget.”
Talking about the new numbers, Angus Taylor of Shadow Accounting said the strong budget performance was the result of the solid economic management of the previous coalition government.
Our record is very clear. We have left an economy with high GDP growth, historically low interest rates, record low unemployment and the greatest recovery in budget earnings in 70 years. ” He said in a twitter post..
Our record is very clear. We have left the economy with strong GDP growth, historically low interest rates, record low unemployment, and a shift to the highest budget returns in 70 years.
— Angus Taylor MP (@AngusTaylorMP) June 24, 2022
Nevertheless, accounting said the budget suffered from a variety of problems, including interest payments on government debt.
“As interest rates get higher and higher, so does the cost of paying off that debt, so that’s another pressure on the budget,” Chalmers said.
“Given the legitimate spending worth the budget, the budget is a fairly large structural deficit, and increased borrowing costs are one of those additional pressures.”
Opposition calling for doubling the income standards of pensioners
As a related development, opposition leader Peter Dutton called for an increase in the income standards of Australian pensioners.
Currently, pensioners can only earn about $ 300 in two weeks if they want to maintain government benefits, and opposition parties are proposing to double this amount.
“Employers can’t find staff. Thousands of jobs in hospitality, agriculture, tourism and retail remain open.” He said in a statement..
“This policy ensures that pensioners and veterans who want to work are not financially punished. It puts more money in their pockets.
Chalmers, in response, said the issue was in parliamentary seats before the federal elections, as it needed to increase the number of workers available in Australia.
“We had a good, productive conversation with National Seniors and others about what we could do here,” he said.
“Even such an idea, which looks relatively modest, still has a relatively high price tag.”
Meanwhile, accounting is expected to provide a ministerial statement detailing the latest economic information, including government forecasts on inflation, when Congress reopens in July.
“It shows that inflation gets worse before it gets better,” he said.
“That’s what we’re all expecting now, and it’s a difficult situation that needs to be addressed before inflation eases over the next year.”