Like any Australian family or business, the Government is focused on keeping expenses down to balance the Budget and pay down debt. A stronger Budget supports jobs and growth and instils confidence as the economy transitions. Strengthening the nation’s finances is key to the Government’s economic plan. Working to balance the Budget will restore the buffers that protect Australia against the economic shocks and uncertainties that might otherwise threaten our future success.
The Government’s plan is to balance the Budget over time by keeping expenditure under control, while creating the conditions for a stronger economy that will allow revenue to grow. As the Budget is repaired, we will create headroom to further ease the tax burden and invest in new priorities, including much needed infrastructure.
Government spending is projected to continue to fall as a share of the economy, but remains above its historical average. In contrast, tax receipts are projected to return to their long run average by 2017-18. It is for this reason the Government is committed to getting expenditure under control and ensuring every taxpayer dollar is spent efficiently, while not adding to the tax burden in Australia. This will help boost productivity and investment, and drive jobs and growth.