Growth alone wonât fix budget
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Savings similar to levels last seen in Tony Abbott and Joe Hockeyâs politically toxic 2014 budget are needed to balance the books despite an expected $98 billion improvement to the bottomline, according to Deloitte Access Economics.
This monthâs budget is expected to show major improvements to Australiaâs finances, but large deficits are still expected to be forecast over the medium term, including $167 billion in 2020-21 and $87 billion in 2021-22.
Treasurer Josh Frydenberg said the Morrison government remains committed to its stage three tax cuts.Â
Alex Ellinghausen
Deloitte Access Economics director Chris Richardson estimated annual savings of about $40 billion would eventually need to be found, but stressed the task of budget repair should not begin too soon.