In the 2012-13 Budget, the Gillard Labor Government will deliver $33.6 billion of savings to the budget bottom line.
These savings contribute to returning the budget to surplus in 2012-13 and surpluses that grow year-on-year over the forward estimates.
The Gillard Government is returning the budget to surplus on time, as promised.
Returning to surplus is our best defence at times of global uncertainty and will continue to give the Reserve Bank room to cut interest rates should it see fit.
The Gillard Government continues to support low and middle income Australians and our communitys most vulnerable including through reforms like the historic first steps towards the National Disability Insurance Scheme.
Our savings strategy has protected low and middle income families and safeguarded the key drivers of productivity including the Governments investment in skills, schools, higher education and research.
These savings have also made room for delivering on our policy priorities addressing cost of living pressures for families, delivering quality health and aged care, and supporting and creating jobs. The savings have also allowed the Government to offset falling tax receipts.
The net impact of new policy decisions in this Budget is an improvement in the budget bottom line by $17.0 billion over the forward estimates.
The 2012-13 Budget also sees government spending as a share of the economy remaining below 24 per cent of GDP in the years from 2012-13.
Many of the savings decisions in this Budget deliver ongoing savings beyond the forward estimates. These build on the Governments previous savings decisions $100 billion in the last four budgets to improve the sustainability of government spending and strengthen the budget position for the future.
A list of major saves in the 2012-13 Budget is presented in Attachment A -download PDF.