Gillard Government Targets Budget Surplus in 2015 Through A$398B Spending in 2013
Treasurer Wayne Swan released on Tuesday Australia's federal budget for 2013, marked by A$398.3 billion spending. The spending aims to return the country's coffers to a surplus by 2015.
He explained that the sixth budget under the Gillard administration is affected by the global economic uncertainty and strong Australian currency.
A significant part of the federal budget would be spent on disability services and school improvement. To fund DisabilityCare Australia, the government would hike the Medicare Levy to 2 per cent of taxable income from 1.5 per cent beginning July 2014.
The treasurer described the sixth budget as a balance between demands of austerity freaks and green types. Mr Swan pointed out in his lunchtime address to the National Press Club in Canberra that the budget was put together in "some of the most unprecedented circumstances in our nation's post-Federation history."
Together with Prime Minister Julia Gillard, the two top officials of Australia spent Wednesday morning on TV and radio explaining the budget, described by the pair as tough and sensible.
"I do think there's a sweet spot between the austerity freaks who say cut way harder and the green types who would happily see the bottom fall out of the budget," Mr Swan said.
The Opposition has yet to come out with its position if it would support the spending cuts such as the scrapping of the baby bonus to release more funds for the new initiatives focusing on disability and school reforms.
The scrapping of the baby bonus is expected to save the federal government $1.03 billion, deferral of tax cuts another $1.5 billion, scrapping the increase to Part A of the Family Tax Benefit would save $2.5 billion and changes to Medicare payments and removal of health care tax breaks save $1.7 billion more.
Mr Swan challenged the Coalition to either accept the planned $43 billion spending cuts or produce an alternative budget for 2013.
"The Treasury does not have one set of numbers for this government and another set for the alternative government," Mr Swan added.
