‘Huge gap’ between Government’s spending targets and cash available to fund projects

Government spending targets have been pushed back in the Budget despite the Government announcing a record budget surplus.

Key points: The Government has been warned it will have to borrow more to meet the Government’s budget deficit target of 2.5 per cent of GDP by 2020, and has promised to cut the number of public sector jobs to 5 per cent by 2020 The Government says it will “take the necessary action” to meet these targets Mr Morrison says the Government will also make cuts in government services and reduce the size of the Government.

Key points:The Government has promised it will reduce the number and size of public services by at least 5 per in 2020The Government says the budget surplus will be achieved through cuts in public services and cuts in Government services, but the Budget Statement says it is “difficult to assess the extent” of any changesThe Government is proposing to make major cuts to public services, including the number, size and size and scope of public and community services, and the length of public service contracts.

Mr Morrison said the Government was “making good progress” on the two major targets of reducing the deficit and increasing public investment.

“The Government’s forecasts are showing that we are on track to meet our Government’s fiscal targets and the Government has committed to spending 3.5 cents on the dollar of surplus in 2020,” he said.

“While this is a huge gap between what the Government is spending on the public sector and what the public wants, the Government recognises that the Government needs to take the necessary actions to meet its fiscal targets.”

Mr Morrison also said the budget statement had a lot of good news for the economy.

“We have an unemployment rate of 3.9 per cent, and our forecast for economic growth is very strong,” he told ABC Radio National.

“And the Government believes that this is going to continue to be one of the strongest economic performance areas in the country.”

The Government announced it would cut the size and scale of the public services to 5.4 per cent over the next five years, which would mean the Government would lose up to 200,000 public sector roles, and up to 500,000 community services.

However, the budget has yet to release its impact analysis on the Government plans, and Mr Morrison said that was still under way.

“This is a very complex document and I want to get it out in the budget so that the public can see what is happening,” he added.

“But I do recognise that this Government’s plan is complex and this Government has had some significant discussions around the plan and what it is.”

Mr Turnbull says the Budget has ‘big news’ for the public, but it still needs to be worked out’The Government said the plan for public sector cuts included “reforming” the way people were employed.

“Today’s Budget confirms that we will make significant changes to our workforce and our public services,” Mr Morrison told ABC Breakfast.

“For the first time in a decade, we will be looking to streamline and modernise our workforce, to streamlining our delivery system, to modernising our workforce in every sector of the economy, to reducing our cost of living, to making our public service more efficient and more effective.”

As we have done in the past, we are continuing to deliver on our public spending targets.

“However, we recognise that we still have a significant deficit and we will have had to make substantial spending cuts over the coming years.”

Topics:government-and-politics,economic-trends,public-sector,jobs,economics-and/or-trade,jobs-and_employment,government-parliament,budget,federal-government,australiaFirst posted January 23, 2020 13:16:46Contact Nicola PritchardMore stories from New South Wales

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