Frydenberg unveils biggest deficit since World War II

·

Treasurer Josh Frydenberg has revealed the budget will be in the red by $85.8 billion in 2019-20 and $184.5 billion in 2020-21, marking the biggest deficit since World War II due to drastic spending to mitigate the damage from the coronavirus pandemic.

At a special budget update on Thursday, the first since December, Mr Frydenberg said the unemployment rate was expected to reach 9.25 percent in the December quarter, while GDP would contract by 0.25 percent in 2019-20 and shrink 2.5 percent in 2020-21.

The economic downturn has cost the budget $32.4 billion in 2019-20 and $72.2 billion in 2020-21. Tax receipts are down $31.7 billion in 2019-20 and $63.9 billion in 2020-21.

The coronavirus pandemic has dashed the Morrison government’s plans to be “back in the black” and produce the first surplus since 2007-08.

The 2020-21 deficit is about four times the last record, which was $54.5 billion when the Rudd government tackled the global financial crisis.

More to come.

Cretan Convention - Web Banner

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Step into the world of mental health with Georgia Cassimatis’ latest book

Greek Australian author and journalist, Georgia Cassimatis, has released a book all about exploring the world of mental health.

GOCNSW Welfare Service to put a spotlight on cyber security awareness

The Greek Orthodox Community of NSW’s (GOCNSW) Welfare Service has organised three Cyber Security Awareness education and training workshops.

Marriage of a Greek woman abroad: What to watch out for

It is during this registration process that numerous problems arise, which are not dealt with immediately but later on.

Athena Competition Greek winners show olive oil diversity

By Lisa Radinovsky from Greek Liquid Gold. At the 10th anniversary edition of the ATHENA International Olive Oil Competition in Chania, Crete, Greece in May, 175 Greek olive oils...

Greece’s island communities face population crisis

The demographic decline in Greece is hitting its islands hard, with Lemnos and Agios Efstratios showing alarming signs of aging populations.

You May Also Like

Scott Morrison joins Greek Orthodox community in celebrating Easter

"As I see the lights all making one, I see a wonderful community." Prime Minister Scott Morrison and his wife, Jenny Morrison, joined Archbishop Makarios in celebrating the Anastasi service.

Andrew Pippos’ debut novel wins the Readings Prize for New Australian Fiction 2021

Andrew Pippos' debut novel, Lucky's, has been crowned the winner of the 2021 Readings Prize for New Australian Fiction.

Aspiring nurse, Pamela Tsolakki, sentenced for dealing drugs

Pamela Tsolakki acted as a driver for her alleged drug-dealing friend on a MDMA run around the eastern suburbs.