The Mid-Year Economic and Fiscal Outlook (MYEFO), released by the Treasurer on Tue 17.12.2013, forecasts a $47bn deficit in 2013-14, and id=”mce_marker”23bn worth of cumulative deficits over the forward estimates. Mr Hockey said the budget position since the Pre-Election Economic and Fiscal Outlook, released on 13 August 2013, has deteriorated by $68bn over the forward estimates.
The Treasurer said that, “in the absence of any policy changes from what we have inherited, the Budget would not return to surplus within the 10-year medium-term projections”. During this time, he said gross debt on issue is projected to increase to $667bn. Mr Hockey said the deterioration in the budget position reflects a softening in the economic outlook that has resulted in significantly lower nominal GDP, which has largely driven the reduction in tax receipts by more than $37bn over the forward estimates.
[LTN 244, 17/12/13]