News dalla rete ITA

24 Novembre 2020

Australia

VICTORIA HEADED FOR $23B BUDGET DEFICIT, $155B DEBT

The Victorian government will deliver an unprecedented $23.3 billion budget deficit next financial year, with net debt expected to blow out to $155 billion within three years, after the state's tax revenue fell by 11.9 per cent.The coronavirus and the state's extended lockdown have smashed the economy causing employment to fall by 182,800 jobs between the March and September quarters, while economic output is forecast to fall by 4 per cent next financial year.Property taxes have been badly hit but Victorian Treasurer Tim Pallas said "now is not the time" to follow NSW in switching from stamp duty to another tax.Mr Pallas also plans to take aim at federal Treasurer Josh Frydenberg over "the single largest redistribution of GST away from any state", pointing to a $1 billion lost each year in GST across the forward estimates. He said an unprecedented $13 billion had been spent to combat the coronavirus crisis with more than $7.6 billion in direct economic support for business.He pointed to the federal government's forecast operating deficit of $213.7 billion and recent comments by the RBA governor and the federal Treasury Secretary to argue that the spending in the budget was necessary. "It is of a magnitude that has never been seen before [but] it's going to be aimed at kickstarting an unprecedented investment in infrastructure and services," Mr Pallas said.The budget will reveal government infrastructure investment is expected to average $19.6 billion a year over the budget and forward estimates. Drivers of zero and low-emission light vehicles will pay a modest, distance-based charge in lieu of fuel excise with more than $45 million to accelerate the adoption of zero and low-emission vehicles.The state's deficits are projected to reduce over the coming years, to $13.1 billion in 2020-21, then $6.7 billion in 2022-23, as the economy recovers and spending returns to more normal levels.Net debt will reach $86 billion in 2020-21, and then grow to $154.8 billion in 2023-24 which the government maintains will be manageable with interest expense as a share of total revenue averages only 4.4 per cent of revenue per year over the forward estimates. (ICE SYDNEY)


Fonte notizia: Financial Review 21.11.2020