Post by MacBeth on Feb 2, 2009 6:31:06 GMT -5
www.smh.com.au/news/national/rudd-reveals-115b-loss/2009/02/02/1233423110873.html?sssdmh=dm16.358520
The Federal Government has suffered a whopping $115 billion fall in revenue due to the global recession, the Prime Minister, Kevin Rudd, announced today.
Speaking in Canberra after the full ministry was briefed on the state of the nation's finances, Mr Rudd said the plunge had caused the budget to go into deficit.
He did not say how big the deficit was but promised the Government would release updated budget figures in the next few weeks and not wait until the May budget.
The Treasurer, Wayne Swan, said company tax revenue was down by $50 billion, income tax down by $13 billion, GST down by $10 billion and other taxes by $2 billion.
"This will be a difficult year for the nation," Mr Rudd said.
He said six of Australia's top 10 trading partners were in recession and the list was growing.
"There has been a $115 billion fall in tax receipts to the Australian Government," he said.
Mr Rudd said that, although the loss was over four years, by way of comparison it was worth about half the Government's annual tax take.
In last May's budget Mr Swan said there would be a budget surplus of $21.7 billion this financial year. That was cut to $5.4 billion in a budget update last November. Yesterday the Government confirmed it was now in deficit.
* smh.com.au will cover the Reserve Bank's decision on interest rates tomorrow at 2.30pm.
www.smh.com.au/news/national/rudd-reveals-115b-loss/2009/02/02/1233423110873.html?sssdmh=dm16.358520
The Federal Government has suffered a whopping $115 billion fall in revenue due to the global recession, the Prime Minister, Kevin Rudd, announced today.
Speaking in Canberra after the full ministry was briefed on the state of the nation's finances, Mr Rudd said the plunge had caused the budget to go into deficit.
He did not say how big the deficit was but promised the Government would release updated budget figures in the next few weeks and not wait until the May budget.
The Treasurer, Wayne Swan, said company tax revenue was down by $50 billion, income tax down by $13 billion, GST down by $10 billion and other taxes by $2 billion.
"This will be a difficult year for the nation," Mr Rudd said.
He said six of Australia's top 10 trading partners were in recession and the list was growing.
"There has been a $115 billion fall in tax receipts to the Australian Government," he said.
Mr Rudd said that, although the loss was over four years, by way of comparison it was worth about half the Government's annual tax take.
In last May's budget Mr Swan said there would be a budget surplus of $21.7 billion this financial year. That was cut to $5.4 billion in a budget update last November. Yesterday the Government confirmed it was now in deficit.
* smh.com.au will cover the Reserve Bank's decision on interest rates tomorrow at 2.30pm.
www.smh.com.au/news/national/rudd-reveals-115b-loss/2009/02/02/1233423110873.html?sssdmh=dm16.358520