Treasurer Wayne Swan has flagged a record deficit of $57.6 billion this year in his second Federal Budget, with no sign of surplus for government coffers until the 2015-16 financial year.
The deficit comes amid a spending spree that includes an increase in the aged pension, up $32.49 per week, a paid parental leave scheme and an extension to the first home buyers grant scheme.
To compensate for the hole in the books, and the government’s revenue losses, the Government will lift the retirement age to 67 every six months from 2017, roll back the private health insurance rebate for middle and high income earners and reconsider family tax benefits, which will save approximately $22.6 billion over four years.
The Budget forecast $210 billion in revenue losses over four years, including a deficit of $57.1 billion in 2010-11, $44.5 billion in 2011-12 and $28.2 billion in 2013-14.
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