Australia's Finance Minister assures budget surplus in 2012-2013
Despite the present fiscal deficit which is anticipated to be worse than the $41.5 billion forecast, Finance Minister Penny Wong assures a budget surplus.
Wong explained that the federal government which is responsible for the Australian economy is dedicated to bring back the surplus in budget that could amount to $3.1 billion in 2012 to 2013.
According to the government, a $13 billion revenue shortfall is expected this year alongside 1 to 2.25 percentage slowdown in the national economic growth brought by the natural catastrophes that hit Australia and Japan.
Wong explained, "The budget timeline back to a surplus in 2012/13 was important for the economy. I don't believe it is only a political objective. It is an economic objective and a responsible one."
"The high dollar, the cautious consumer, obviously, people are saving more now. Those things are impacting in the short term and that is the experience of people out there," she told the ABC television.
Drop in the revenue is one of the short-term challenges that the Australian economy faces right now.
"But the immediate weakness in several sectors of the economy, such as retail, tourism and manufacturing, had to be balanced against the investment boom, particularly in the resources sector, as it gathers apace," Wong added
The first estimate for capital spending and investment for 2011 to 2012 was $132 billion which represents a 30.3 percent increase on the previous year. This is according to an official data showed in February this year.
About 55 per cent of that increase was brought in by mining investment. "Maybe people out there not connected with the mining industry might not have much reality for them. We have to look at the whole economy and we know that investment wave is coming and in that context it is the right thing to do," Wong said.