Abbott Plots Path to Surplus With Australia Budget Cuts
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Australia will cut spending on foreign aid, welfare and the public service and impose a tax on the highest paid as Prime Minister Tony Abbott uses his first budget to downsize government and set a path to surplus.
Treasury forecast a A$29.8 billion ($27.9 billion) deficit for the 12 months through June 2015, down from A$49.9 billion this fiscal year, with shortfalls narrowing in the following three years, budget papers released late yesterday in Canberra show. It announced a A$11.6 billion infrastructure package to help a shift from mining-led growth, and will start a A$20 billion medical research fund.