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BUDGET RECORDS LARGEST DEFICIT ON RECORD

June 26, 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 May 2020 Monthly Financial Statements reveal that the Federal Budget is now recording its biggest budget deficit since records began 50 years ago.
 
The budget bottom line has deteriorated by more than $60 billion compared to what was predicted in the 2019-20 MYEFO, with the budget deficit increasing from $40 billion at the end of April to $64.9 billion at the end of May.
 
Lower receipts were responsible for $28 billion of the deteriorating budget figures, with the majority of that being $13 billion lower in company tax revenue.
 
Today’s data shows net debt increasing to another record high of $463.7 billion, up from $441.3 billion, after this Government had doubled the debt prior to the impacts of COVID-19 hitting the budget. 
 
The May figures also show the fiscal impact of the increased but essential spending on programs like JobKeeper and JobSeeker which have worked to support jobs and households through the pandemic.
 
With these programs due to finish in just 93 days and with more than 5 million Australians relying on them to keep food on the table for their families, Scott Morrison must release the JobKeeper review immediately, outline a clear plan for economic recovery and provide some certainty for workers and employers for the months ahead.

FRIDAY, 26 JUNE 2020