more of swans budget lies

Lying dogs they are






"""The federal government has cut this year's forecast budget surplus to just $1 billion, $500 million less than its May prediction."""""


Treasurer Wayne Swan this morning revealed the government would slash spending by $4 billion in a bid to reach the forecast surplus.

He said the forecast budget surplus had been scaled back due to falling government revenue and lower commodity prices.

Mr Swan also indicated the surplus in 2015-16 had been cut from $7.5 billion to $6 billion.

The government plans to make $16.4 billion in new savings over four years.

Mr Swan today released an update to the May 2012/13 budget, laying out changes to the baby bonus and the way big companies pay tax as well as further reforms to private health insurance.

Mr Swan said while Australia's economic fundamentals remained strong, worsening global conditions had cut almost $22 billion from tax receipts over the forward estimates and $4 billion alone in 2012/13.

"The weaker global outlook and lower than expected commodity prices, along with the general easing of price pressures in the economy, are again slowing the recovery in tax revenue," Mr Swan said in a statement.

The domestic growth forecast has been cut since the May budget.

Real gross domestic product (GDP) is now forecast to grow at around trend at three per cent in 2012/13 and 2013/14.

This is a downgrade of one quarter of percentage point since the May budget.

Australia's terms of trade is also forecast to worsen, declining by eight per cent this financial year compared to a previous forecast fall of 5.75 per cent.

But unemployment rate is expected to remain low at five percent in 2012/13 and 2013/14, while inflation is likely to remain well contained.

"The government has responded to the more challenging global outlook by delivering $16.4 billion in new savings over the forward estimates," Mr Swan said.

"These savings strike the right balance, minimising any impact on the economy and on the community's most vulnerable, while still maintaining strong public finances."