Improvement in budget deficit as COVID recovery provides economic boost in first half of 2021
3 years, 2 months ago

Improvement in budget deficit as COVID recovery provides economic boost in first half of 2021

ABC  

The federal government has revealed the budget deficit was $27 billion lower than forecast in the May budget. Key points: Treasurer Josh Frydenberg says lower unemployment is to thank for the improvement The original forecast was for a $161 billion deficit for the 2020-21 financial year The extended lockdowns in NSW, Victoria and the ACT are expected to increase this year's deficit But current lockdowns are likely to wipe out the gains, with the government spending tens of billions on support payments in recent months. The 2020-21 budget estimated there would be a $161 billion deficit by the end of the financial year, but Treasurer Josh Frydenberg today revealed the actual figure was $134.2 billion, $26.8 billion lower than anticipated. Mr Frydenberg said a drop in the unemployment rate was the "key driver" behind the improved figures. The unemployment rate has fallen, but so have hours worked Photo shows The front entrance of a Centrelink office in the Sydney suburb of Rockdale Australia's unemployment rate drops again, but a steep fall in hours worked last month paints a more accurate picture of the economic pain resulting from COVID lockdowns.

Budget Billion Forecast Lockdowns Frydenberg Mr Frydenberg  deficit  covid  unemployment  financial  boost  half  frydenberg  budget  improvement  forecast  lockdowns  lower  provides  billion  rate  payments  economic  recovery  2021

History of this topic

Key GOP economic talking point destroyed by new analysis
6 months ago

Key GOP economic talking point destroyed by new analysis

Raw Story  

National debt has for decades been a go-to issue Republicans try to use to persuade voters against supporting social programs — an issue that has crept back to the forefront with new reports that annual interest payments serving the national debt now exceed what the U.S. spends on its military. According to the report, former President Donald Trump's contribution to …

Congressional Budget Office raises this year’s federal budget deficit projection by $400 billion
6 months ago

Congressional Budget Office raises this year’s federal budget deficit projection by $400 billion

Associated Press  

WASHINGTON — The Congressional Budget Office said Tuesday that it projects this year’s federal budget deficit to be $400 billion higher, a 27% increase compared to its original estimate released in February. White House spokeswoman Karine Jean-Pierre, said in a statement that the report “is further evidence of the need for Congress to pass President Biden’s Budget to reduce the …

Federal budget to haul in extra cash once again, but less than in previous years
7 months, 2 weeks ago

Federal budget to haul in extra cash once again, but less than in previous years

ABC  

Next week's federal budget will once again collect more in tax than expected, raking in an extra $25 billion over the five-year budget forecasting period. The windfall is smaller than in the past six updates, prompting Treasurer Jim Chalmers to warn his third budget would be characterised by "intensifying, not easing" financial pressure to show fiscal restraint. He said this …

CBO projects a $188 billion decrease in this year’s federal budget deficit, but debt would then grow
10 months, 2 weeks ago

CBO projects a $188 billion decrease in this year’s federal budget deficit, but debt would then grow

Associated Press  

WASHINGTON — The Congressional Budget Office said Wednesday that it expects the federal budget deficit to drop by $188 billion this fiscal year to $1.5 trillion, a short-lived dip as the annual shortfall is likely to rise over the next nine years. That’s mainly because of an agreement President Joe Biden signed last summer with Congressional Republicans that temporarily lifted …

Union Budget fiscal deficit for 2024-25 at 5.1% compared to 5.8% in FY24
10 months, 3 weeks ago

Union Budget fiscal deficit for 2024-25 at 5.1% compared to 5.8% in FY24

The Hindu  

The revised fiscal deficit for financial year 2024-25 is estimated at 5.1 per cent of the GDP, down from 5.8 per cent for the current financial year 2024, Union Minister Nirmala Sitharaman announced in her interim Budget speech on Thursday. As per data released by the Controller General of Accounts on Wednesday, the Union government’s fiscal deficit touched ₹9.82 lakh …

Budget 2024: 5 key changes we can expect this year
10 months, 3 weeks ago

Budget 2024: 5 key changes we can expect this year

Firstpost  

On February 1, Finance Minister Nirmala Sitharaman is scheduled to deliver the Union Budget 2024–25. Thus, let’s examine five important charts that provide insight into the interim Budget’s chances before it is announced: Total Revenue vs Expenditures Revenue and spending are the most frequently followed budget metrics, particularly in relation to the growth of the economy. In spite of nominal …

US budget gap soars to $1.7 trillion, largest outside COVID era
1 year, 2 months ago

US budget gap soars to $1.7 trillion, largest outside COVID era

Live Mint  

The United States government on Friday posted a $1.695 trillion budget deficit in fiscal 2023, a 23 percent jump from the prior year as revenues fell and outlays for Social Security, Medicare and record-high interest costs on the federal debt rose. Taking into account the two one-off adjustments, last fiscal year's deficit would have been closer to $1 trillion and …

The Federal Deficit Is Even Bigger Than It Looks
1 year, 2 months ago

The Federal Deficit Is Even Bigger Than It Looks

Live Mint  

When it comes to the size of the federal government’s annual deficit, appearances can be deceiving. The gap between spending and revenue for fiscal year 2023, which ended on Sept. 30, was $1.7 trillion, the Congressional Budget Office projected ahead of the official Treasury Department figures. When the Biden administration announced its plan to forgive federal student debt held by …

More red ink: Congressional budget agency projects bigger deficits as debt talks continue
1 year, 7 months ago

More red ink: Congressional budget agency projects bigger deficits as debt talks continue

Associated Press  

WASHINGTON — This year’s projected government budget deficit has jumped by $130 billion, due in part to a proposed change to student loan repayment plans and a series of bank rescues organized by federal regulators, the Congressional Budget Office said Friday. Revenue collections through April were lower than the agency expected, resulting in a projected budget deficit of $1.5 trillion …

Federal budget 2023: Does a budget focused on the cost of living mean inflation and interest rates could get worse?
1 year, 7 months ago

Federal budget 2023: Does a budget focused on the cost of living mean inflation and interest rates could get worse?

ABC  

Treasurer Jim Chalmers is adamant his second budget will not make Australia's inflation problem worse while providing cost of living relief — but economists are divided about whether that confidence is misplaced. Key points: Some economists believe the spending will not have an impact on inflation, but others warn another rate rise could be on the horizon Treasurer Jim Chalmers …

Federal budget summary: JobSeeker and welfare payments increased as living costs bite
1 year, 7 months ago

Federal budget summary: JobSeeker and welfare payments increased as living costs bite

ABC  

A modest increase in unemployment benefits and cheaper health care are the centrepieces of a federal budget tasked with helping the nation's most vulnerable as living costs continue to hurt households. Key points: The rates for JobSeeker, rent assistance and the single-parent payment have increased in the budget Labor's second budget includes a surplus this financial year, and the prospect …

Federal budget tax windfall mostly pocketed to wipe out deficit, Treasurer says
1 year, 7 months ago

Federal budget tax windfall mostly pocketed to wipe out deficit, Treasurer says

ABC  

The federal treasurer has banked a boon to the government's coffers from higher commodity prices and more people paying tax, as the government readies to unveil what could be the first surplus budget in 15 years. Key points: A tax windfall will mostly be pocketed to help bring the federal budget towards surplus A surplus budget has not been delivered …

CM asserts that 293 of the 390 Budget announcements made last year have been implemented
1 year, 10 months ago

CM asserts that 293 of the 390 Budget announcements made last year have been implemented

The Hindu  

Dismissing Opposition allegations, Chief Minister Basvaraj Bommai on Friday asserted that 293 of the 390 Budget announcements made last year had been implemented. Replying to the debate on the State Budget in the Legislative Council, the Chief Minister said 90% of the Budget expenditure would be spent by the end of this financial year. “Going by the current tax collection, …

Budget 2023 | Fiscal deficit to be brought down to below 4.5% by 2025-26: FM Nirmala Sitharaman
1 year, 10 months ago

Budget 2023 | Fiscal deficit to be brought down to below 4.5% by 2025-26: FM Nirmala Sitharaman

The Hindu  

Fiscal deficit would be brought down to below 4.5% by 2025-26, Finance Minister Nirmala Sitharaman said on February 1. She also said that tax receipts for the next fiscal are budgeted at ₹23.3 lakh crore and States would be allowed 3.5% of GDP as fiscal deficit. To finance the fiscal deficit in 2023-24, net market borrowing from dated securities is …

Budget 2023 may peg gross borrowing under ₹16 trillion: Report
1 year, 10 months ago

Budget 2023 may peg gross borrowing under ₹16 trillion: Report

Live Mint  

India's federal government is likely to keep its gross market borrowing below ₹16 trillion for 2023/24 as it does not want to destabilise the bond market with any negative surprises, two sources close to the deliberations said. The government has so far raised ₹12.93 trln up to Jan. 27, which is 91% of the overall gross borrowing target of ₹14.21 …

What will be the math behind Budget 2023?
1 year, 11 months ago

What will be the math behind Budget 2023?

Live Mint  

In the upcoming Union budget, the Centre will make prudent promises as always about keeping its finances in check. That’s changed: a fresh estimate released on Friday predicts growth at 15.4%, which means the Centre can keep its 6.4% promise even if fiscal deficit overshoots the target by about ₹0.9 trillion. View Full Image Mint Fiscal Hole In its budget …

Federal budget 2022: Winners and Losers
2 years, 2 months ago

Federal budget 2022: Winners and Losers

ABC  

After 10 years out of government, Treasurer Jim Chalmers has delivered Labor's first budget since its election victory in May. Winner: Families One of the centrepieces of the government's budget — and its election campaign — is its $4.7 billion spend on child care over the next four years. $1.7 billion over six years will be going towards women's safety …

Deficit figures set up competing visions from Biden and GOP
2 years, 2 months ago

Deficit figures set up competing visions from Biden and GOP

Associated Press  

This fiscal year’s budget deficit shrunk in half from last year, but the red ink soared on a monthly basis in September largely because of President Joe Biden’s plans to forgive student debt, as three decades’ worth of costs were compressed into a single month. The budget figures released Friday by the Treasury Department reveal dueling visions about what it …

Biden administration forecasts $1.03T deficit, down $400B
2 years, 4 months ago

Biden administration forecasts $1.03T deficit, down $400B

Associated Press  

WASHINGTON — The Biden administration is forecasting that this year’s budget deficit will be nearly $400 billion lower than it estimated back in March, due in part to stronger than expected revenues, reduced spending, and an economy that has recovered all of the jobs lost during the multi-year pandemic. The administration’s Mid-Session Review said much of the improvement in the …

Biden’s budget plan: Higher taxes on rich, lower deficits
2 years, 8 months ago

Biden’s budget plan: Higher taxes on rich, lower deficits

Associated Press  

WASHINGTON — President Joe Biden announced a budget blueprint Monday that calls for higher taxes on the wealthy, lower federal deficits, more money for police and greater funding for education, public health and housing. Appearing at the White House with his budget director Shalanda Young, Biden said the proposal sends a clear message to the public about “what we value.” …

Josh Frydenberg hints at fuel excise cut, with budget expected to address cost of living
2 years, 8 months ago

Josh Frydenberg hints at fuel excise cut, with budget expected to address cost of living

ABC  

Treasurer Josh Frydenberg has all but confirmed motorists will be given relief at the petrol pump under a package of cost-of-living measures in Tuesday's federal budget. Key points: The Treasurer says inflation is expected to increase from the current level of 3.5 per cent Mr Frydenberg said the government would "make some upgrades in our budget numbers" The budget is …

Budget 2022 is impactful & visionary, says US-India trade networking body
2 years, 10 months ago

Budget 2022 is impactful & visionary, says US-India trade networking body

India Today  

Finance Minister Nirmala Sitharaman has been able to once again come up with an impactful and visionary budget which is “balanced, fiscally prudent and growth-oriented” in the midst of the third wave of Covid-19, the USA-India Chamber of Commerce said. It also paves the way for post-pandemic longer-term restructuring of the Indian economy,” Karun Rishi, president of Boston-based USA India …

Budget 2022: FM may focus on roadmap to recovery for economy through job creation, demand generation
2 years, 10 months ago

Budget 2022: FM may focus on roadmap to recovery for economy through job creation, demand generation

Firstpost  

The Union Budget for 2022 comes at a time when the Indian economy has been hit hard by the continuing pandemic. This year’s Budget will likely focus on a roadmap to recovery for the economy through job creation, demand generation, and driving the economic growth of over 8 percent. While the fiscal deficit stood at a mere 46 percent of …

Engineered setback: Government's COVID response aggravates economic crisis
3 years ago

Engineered setback: Government's COVID response aggravates economic crisis

The Hindu  

Recent evidence is telling. Those figures suggest that after having recorded a 20.1 per cent growth rate during the first quarter of 2021-22, the country’s GDP registered a much smaller 8.4 per cent growth in the second quarter relative to the same quarter a year earlier. As compared with that, over the first half of the current financial year, growth …

Minnesota budget officials project huge $7.7 billion surplus
3 years ago

Minnesota budget officials project huge $7.7 billion surplus

Associated Press  

ST. PAUL, Minn. — Minnesota officials will release an updated budget forecast on Tuesday that’s expected to show further improvements and set the stage for the 2022 legislative session. This will be the first major revenue-and-spending forecast since projections from Minnesota Management and Budget in February, when an anticipated $1.3 billion deficit due to the pandemic swung to a $1.6 …

‘Time not ripe for fiscal consolidation’
3 years, 4 months ago

‘Time not ripe for fiscal consolidation’

The Hindu  

The time is not yet ripe for fiscal consolidation, and deeper reforms will be undertaken as soon as the impact of the COVID-19 pandemic is overcome, Finance Minister Palanivel Thiaga Rajan said on Friday. “An effective Samadhan Scheme will be launched to clear the pending dues of ₹28,000 crore under the Tamil Nadu Value Added Tax and other legacy legislation.” …

India's fiscal deficit in 2020-21 lower than expected
3 years, 6 months ago

India's fiscal deficit in 2020-21 lower than expected

The Hindu  

India recorded a fiscal deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts. Total revenue receipts turned out to be about ₹88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was ₹61,000 crore more than the revised estimate. …

Decade of budget deficits ahead as government spends billions to recover pandemic-hit economy
3 years, 7 months ago

Decade of budget deficits ahead as government spends billions to recover pandemic-hit economy

ABC  

The Treasurer has declared Australia's economic engine is "roaring back to life" as he unveiled tens of billions in new spending in a budget that could be the Coalition's last before a federal election. Key points: The deficit this financial year is expected to be $161 billion, falling to $106 billion in 2021-22 The government has forecasted an unemployment rate …

The budget got its growth focus right but challenges still remain
3 years, 10 months ago

The budget got its growth focus right but challenges still remain

Live Mint  

The budget has struck while the iron is hot, both on reforms and the fiscal math. The budget then did what would have been unthinkable had the pandemic not occurred—veer off the Fiscal Responsibility and Budget Management path by as much as 3.8 percentage points for next fiscal, almost double the budgeted borrowing, and altogether redraw the path of fiscal …

Budget 2021 will be starting point for economic recovery after COVID-19 pandemic, say experts
3 years, 10 months ago

Budget 2021 will be starting point for economic recovery after COVID-19 pandemic, say experts

Firstpost  

New Delhi: Finance Minister Nirmala Sitharaman on Monday will deliver her promised Budget like no other that is expected to provide relief to the pandemic-hit common man as well as focus more on driving the economic recovery through higher spending on healthcare, infrastructure and defence amid rising tensions with neighbours. Higher capital expenditure outlay for the National Infrastructure Pipeline programme …

Union Budget 2021: Why stakes are high in FM Sitharaman's 'budget like never before'
3 years, 10 months ago

Union Budget 2021: Why stakes are high in FM Sitharaman's 'budget like never before'

India Today  

All eyes will be on Finance Minister Nirmala Sitharaman as she gets ready to announce the Union Budget 2021 on February 1 amid huge public expectations in the wake of Covid-induced economic crisis. As former RBI Governor and top economist, Raghuram Rajan, said, this year’s budget plan will depend on prioritisation as the government is expected to spend more for …

COVID-19 pummels US economy in 2020; performance weakest in 74 years
3 years, 10 months ago

COVID-19 pummels US economy in 2020; performance weakest in 74 years

Live Mint  

Washington: The U.S. economy contracted at its sharpest pace since World War Two in 2020 as the COVID-19 pandemic depressed consumer spending and business investment, pushing millions of Americans out of work and into poverty. In the fourth quarter, GDP increased at a 4.0% annualized rate as the virus and lack of another spending package curtailed consumer spending, and partially …

Union Budget 2021 should focus on putting economy back on track, not on arresting fiscal deficit, says India Ratings
3 years, 10 months ago

Union Budget 2021 should focus on putting economy back on track, not on arresting fiscal deficit, says India Ratings

Firstpost  

Mumbai: The forthcoming Union Budget should focus more on putting the economy back on track and not too much on arresting fiscal deficit, which is seen at 6.2 percent in 2021-22, down from 7 percent this year, according to a report. The Union Budget 2020-21 had estimated fiscal deficit at Rs 7.96 lakh crore or 3.5 percent of GDP, but …

Union Budget 2021: After pandemic disruption, time to focus on demand side of economy
3 years, 10 months ago

Union Budget 2021: After pandemic disruption, time to focus on demand side of economy

Firstpost  

Whichever way one may look at, the priority of FY 2022 Union Budget has to be and would be on getting the economy back on track. However, even at that time government finances were constrained and the government used the escape clause available under the Fiscal Responsibility and Budget Management Act to let the fiscal deficit of FY 2020 slip …

WA Budget in surplus as economy continues to reap mining riches despite pandemic
4 years, 2 months ago

WA Budget in surplus as economy continues to reap mining riches despite pandemic

ABC  

Bumper iron ore royalties have helped Western Australia forecast a budget surplus of $1.2 billion this financial year, despite the economic impacts of the COVID-19 pandemic, with Treasury anticipating the state's hard border will be down sometime between April and June next year. Key points: WA is forecasting budget surpluses for the next four years The centrepiece of the Budget …

Budget 2020 has been a gamble for the Government — and it could backfire
4 years, 2 months ago

Budget 2020 has been a gamble for the Government — and it could backfire

ABC  

If ever there was a "forgive and forget" Budget, this is it. That is, the unprecedented nature of the disruption caused by a global pandemic makes most of the Budget's forecasts — things like the deficit and growth forecasts — not much more than a "pin the tail on the donkey" exercise. In that context, the Budget's two most important …

Federal Budget to include cash payments worth $500 for aged, family and disability welfare recipients
4 years, 2 months ago

Federal Budget to include cash payments worth $500 for aged, family and disability welfare recipients

ABC  

Aged, carer, family and disability welfare recipients will receive $500 in cash payments in the next five months, in a move the Federal Government hopes will stimulate the Australian economy. Key points: Cash payments will be paid in December this year and March, 2021 Both payments will be $250 The payments are part of the Federal Budget, which was delayed …

Government braces for massive deficit as tax cuts, spending set to be outlined in coronavirus Budget
4 years, 2 months ago

Government braces for massive deficit as tax cuts, spending set to be outlined in coronavirus Budget

ABC  

The Federal Government is preparing to hand down one of the most consequential budgets in living memory, with tax cuts, infrastructure spending and a record deficit expected to be outlined when Treasurer Josh Frydenberg speaks in Parliament this evening. Key points: Fast-tracked tax cuts are set to put billions in the pockets of Australian workers Fast-tracked tax cuts are set …

Federal Budget 2020: Winners and losers
4 years, 2 months ago

Federal Budget 2020: Winners and losers

ABC  

These are some of the winners and losers in Josh Frydenberg's 2020 Budget, which has been inevitably defined by the coronavirus pandemic. The Security Statement outlines $240 million of funding measures for the next four years that focus on increasing jobs for women in male-dominated industries like construction, more co-funded grants for women-founded start-ups, a focus on encouraging girls and …

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion
4 years, 2 months ago

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion

ABC  

Billions of dollars in fast-tracked tax cuts and younger worker wage subsidies underline the Federal Government's budget recovery pitch, as Australia's recession sends debt and deficits to record levels. Key points: Debt and deficits are set to hit record highs as coronavirus savages the economy Debt and deficits are set to hit record highs as coronavirus savages the economy Businesses …

Govt Should Have Clear Exit Strategy, Milestones Needed for Fiscal Consolidation: RBI
4 years, 3 months ago

Govt Should Have Clear Exit Strategy, Milestones Needed for Fiscal Consolidation: RBI

News 18  

The government should have a clear exit strategy and credible milestones for fiscal consolidation in the coming years, the Reserve Bank said on Tuesday in its annual report amid meeting the fiscal targets becoming more challenging due to the coronavirus pandemic. Based on information from 25 states, the general government fiscal deficit increased from 5.4 per cent of GDP in …

Fiscal Deficit Touches 83.2% of Budget Estimates at End-June due to Poor Tax Collection amid Lockdown
4 years, 4 months ago

Fiscal Deficit Touches 83.2% of Budget Estimates at End-June due to Poor Tax Collection amid Lockdown

News 18  

The country's fiscal deficit during the first quarter of this fiscal widened to Rs 6.62 lakh crore or 83.2 per cent of the budget estimates, mainly on account of poor tax collections due to the coronavirus lockdown. The government had pegged the fiscal deficit for 2020-21 at Rs 7.96 lakh crore or 3.5 per cent of the GDP in the …

Federal Government deficit hits record high of $86 billion as coronavirus devastates the economy
4 years, 5 months ago

Federal Government deficit hits record high of $86 billion as coronavirus devastates the economy

ABC  

Australia's budget deficit hit almost $86 billion last financial year, the biggest blow to the bottom line since World War II, Treasurer Josh Frydenberg has revealed. Key points: A forecasted $5 billion surplus for 2019-20 ended in a deficit of almost $86 billion A forecasted $5 billion surplus for 2019-20 ended in a deficit of almost $86 billion It is …

US budget deficit hits all-time high of $864 billion in June
4 years, 5 months ago

US budget deficit hits all-time high of $864 billion in June

Associated Press  

WASHINGTON — The federal government incurred the biggest monthly budget deficit in history in June as spending on programs to combat the coronavirus recession exploded while millions of job losses cut into tax revenues. For the first nine months of this budget year, which began Oct. 1, the deficit totals $2.74 trillion, also a record for that period. That total …

How Covid-19 brought the world economy to its knees
4 years, 5 months ago

How Covid-19 brought the world economy to its knees

India Today  

Three major global economic institutions - International Monetary Fund, United Nations Conference on Trade and Development and World Bank - have warned that financial consequences of the Covid-19 pandemic will be worse than feared. According to its latest edition of the World Economic Outlook, global Gross Domestic Product will shrink to -5 per cent in 2020, nearly 2 per cent …

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