Barton Deakin Brief: Commonwealth Budget 2016-17

Written on the 4 May 2016

Last night the Treasurer, the Hon. Scott Morrison MP, delivered the 2016-17 Commonwealth Budget in the House of Representatives. The Treasurer announced that there will be an expected underlying cash deficit of $37.1 billion deficit in the 2016-17 financial year (2.2 per cent of GDP). 

The underlying cash deficit is expected to reduce to $6 billion (0.3 per cent of GDP) in 2019-20. 

Real GDP growth is forecast to grow by 2.5 per cent in the 2016-17 financial year, and strengthen to 3 per cent in the 2017-18 financial year. 

Government payments in 2016-17 are expected to be 25.8 per cent of GDP. This is expected to fall to 25.2 per cent over the forward estimates. 

The unemployment rate is forecast to fall from 5.75 per cent in 2015-16 to 5.5 per cent to in 201718. It is projected to stay steady at 5.5 per cent until 2019-20.

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Source: Barton Deakin

Image:  Treasurer Scott Morrison has used his maiden budget to deliver tax concessions to small businesses. Photo: Alex Ellinghausen smh.com.au