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APRIL MONTHLY FINANCIAL STATEMENTS SHOW BUDGET $32 BILLION WORSE OFF

May 29, 2020

SENATOR KATY GALLAGHER
SHADOW MINISTER FOR FINANCE
SHADOW MINISTER FOR THE PUBLIC SERVICE
CHAIR OF THE SENATE SELECT COMMITTEE ON COVID-19
SENATOR FOR THE AUSTRALIAN CAPITAL TERRITORY

 

Today’s release of the April 2020 Monthly Financial Statements demonstrate the significant economic and budgetary impact of COVID-19.
 
The budget bottom line is more than $32 billion worse than what was predicted in the 2019-20 MYEFO, with the budget deficit at the end of April standing at $40 billion.
 
More than half of this is due to lower receipts ($20.5 billion), of which lower company tax revenue was a significant contributor.
 
Today’s data also shows net debt increasing to another record high of $441.3 billion, more than double what the Government inherited when they took office in September 2013.
 
The April figures do show the impact of Government spending to support jobs, livelihoods and the economy, which Labor supported, including the first $750 payment and the Cash Flow Boost.
 
However, the budget figures do not show the impact of the JobKeeper program, which only began payments to employers in May.
 
These sobering numbers only underlie the importance of the Government releasing updated economic and budgetary forecasts, echoing what the Reserve Bank Governor said yesterday when he said putting out forecasts would “add to confidence and the quality of public discourse.”
 
FRIDAY, 29 MAY 2020