The Mid-Year Economic and Fiscal Outlook released today shows the budget returning to surplus in 2012-13, with surpluses growing over the forward estimates.
An additional $16.4 billion in savings has been identified in this MYEFO, adding to more than $130 billion in savings identified in the past five Budgets.
After accounting for new spending decisions reported in MYEFO, the net improvement to the budget bottom line from these savings is $10.5 billion.
These savings make possible the return to surplus, which is appropriate given current economic conditions with economic growth expected to be around trend, unemployment expected to remain low and commodity prices still at historically high levels.
In preparing the MYEFO, the Government has again made responsible savings and prioritised important social reforms in line with Labor values of fairness, equality and opportunity and to protect low and middle-income earners and the most vulnerable in our community.
Many of the savings decisions in MYEFO, like in previous updates, continue to improve the strength of the budget position over time. Savings identified in todays MYEFO ensure the budget is sustainable into the future.
Our disciplined approach to budget management has enabled this Government to implement a number of historic and lasting social reforms since coming to office in 2007, including pension reform, healthcare reform, pay equity and Paid Parental Leave.