Federal Treasurer Wayne Swan is set to unveil the biggest budget deficit in Australian history today, and forecast a big rise in unemployment.
Speaking at the traditional pre-budget doorstop in Canberra, Swan says the federal budget would be about jobs, nation building and a path back to surplus.
“There are no easy answers when you are facing a revenue write down of something like $200 billion,” Swan told reporters.
“That means difficult decisions, and difficult decisions we accept full responsibility for.”
Budget leaks indicate that last year’s $22 billion surplus has crashed to a $58 billion deficit.
It is expected there will be a further reduction in growth forecasts. The budget is expected to include further infrastructure spending, pension reform, an announcement on parental leave from 2011 and legislated tax cuts from 1 July.
Middle-class welfare benefits are expected to be hit along with smokers and drinkers.
“Everybody in Australia has to do their bit and, of course, some people have the capacity to do a bit more.”
Swan said this morning the Coalition had to face up to its responsibilities. “Every savings measure tonight that they oppose means a bigger deficit and less money available for important things like pensions,” he says.
“You will certainly see all the forecasts tonight. But I don’t intend to pre-empt those today.”
Watch out for our special Budget 2009 email alert this evening with all the news and issues for business owners.
Read the top budget issues here.
Smart Company is a sister publication to The Mandarin, catering to Australia’s entrepreneurs, small and medium business owners and business managers.
