Swan Shuns Europe-Style Austerity in Bet on Aussie Jobs: Economy
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Australian Treasurer Wayne Swan will eschew European-style austerity as a stronger currency slows growth, wagering the government can win a Sept. 14 election fought on jobs and absorb the pain of a broken surplus promise.
The underlying cash deficit will be A$18 billion ($17.8 billion) in the 12 months to June 30, 2014, Swan said in Canberra yesterday as he released the federal budget. The A$19.4 billion shortfall this fiscal year is 1.3 percent of gross domestic product, compared with a projected A$1.1 billion surplus released in the government’s mid-year review seven months ago. The Australian dollar dropped to an 11-month low after the release.