Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Fifield for that question. MYEFO is clear that the global financial crisis and the global recession have resulted in a $40 billion reduction in the budget surplus. There are no easy solutions or quick fixes to the global financial crisis. MYEFO is a reminder that while the Australian economy is sound our budget is not immune from the global slowdown and the real possibility of a global recession.

Tax receipts have been revised down by $5 billion in 2008-09, $12.2 billion in 2009-10, $12.4 billion in 2010-11 and $7.9 billion in 2011-12. In MYEFO, the government is forecasting a modest surplus but as global conditions deteriorate that position will become tougher and tougher. The government remains committed to taking whatever action is necessary to strengthen growth and limit the impact of the global recession on jobs. Our strategy is to run budget surpluses on average over the medium term and to allow the automatic stabilisers in the budget to do their job. But the budget is not immune from the global financial crisis, which has delivered a global recession and budget deficits all around the world. That is one reason why we have an economic security strategy to support growth. The $10.4 billion economic security strategy is designed— (Time expired)