Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Thank you very much. Since the parliament last met, the government has released the mid-year economic and fiscal update by way of half-yearly update on our 2015-16 budget. What the half-yearly budget update shows is that our budget position continues to be on an improving trajectory. The deficit is projected to reduce year on year, both in dollar terms and as a share of GDP. The net debt is expected to peak at 18.5 per cent in 2017-18, before it comes down. Expenditure in our half-yearly budget update is $13.3 billion lower over the forward estimates than anticipated at budget time. Expenditure as a share of GDP is projected to fall from 25.9 per cent this year to 25.3 per cent at the end of the forward estimates. And we have maintained the discipline not to go backwards—as a result of policy decisions of the government—with all decisions to increase spending on high-priority areas more than offset in other areas. Of course, the rating agencies have confirmed our AAA credit rating— (Time expired)