Budget Decreasing debt : Morrison

Treasurer Scott Morrison claims his mid-year budget inspection will show that the Turnbull authorities is continuing to deliver to “prudent and responsible” economic management.

The mid-year economic and fiscal outlook will be published just after midday on Monday and will reveal government debt $23 billion smaller within the subsequent four years than anticipated in the time of the May budget.

Mr Morrison says that will save taxpayers around $2.3 billion in interest payments to the outstanding debt within the Student budget quotes, rising to $1 billion annually by 2020/21.

“In the years ahead we need to make additional progress on bringing the debt down because we get the budget back into balance as guaranteed,” Mr Morrison told AAP.

“Over the following ten years we expect (gross) debt to be $40 billion we were projecting in May.”

Gross debt dropped $517 billion on Friday, according to the web site of the Australian Office of Financial Management that oversee the government debt portfolio.

Economists also expect the 2017/18 budget deficit is likely to be smaller than forecast compared to May thanks as part of buoyant jobs development.

A budget surplus is forecast for 2020/21.

Mr Morrison said the mid-year upgrade will even reveal from this financial year that the authorities will no more be borrowing to cover recurrent expenditure, for example schools financing, Medicare and welfare.

That would be a year.

“From this financial year, 2017/18, now, we’re no more putting the equivalent of the federal supermarket on the credit card,” Mr Morrison said.

This will be first time since the 2008-2009 global financial crisis that the Australian government is not expected to need to borrow for recurrent spending.

Source

http://www.dailymail.co.uk/wires/aap/article-5188461/Responsible-budget-reducing-debt-Morrison.html

source http://www.nwsuburban-bankruptcy.com/budget-decreasing-debt-morrison/