The Gillard Government will deliver budget savings of $22 billion in the 2011-12 Budget, continuing the Government's strong track record in identifying efficiencies and making tough savings decisions.
By delivering these savings the Government has met its key fiscal commitments, including returning the budget to surplus in 2012-13.
The spending decisions in this budget are more than offset by savings, meaning policy decisions deliver a net improvement to the bottom line of $5.2 billion across the forward estimates.
This means that real spending growth across the forward estimates averages 1 per cent per year the lowest real growth rate over five years since the 1980s.
These savings have enabled the Government to more than cover the $4.4 billion in variations in payments related to natural disasters.
This Budget delivers a reduction in government spending as a share of the economy, with spending declining from 24.5 per cent percent of GDP in 2011-12 to 23.5 per cent in 2014-15.
The Government has delivered a responsible Budget it cuts spending and builds surpluses in the years ahead so we're not adding to capacity and price pressures caused by the mining boom.
By achieving substantial savings together with restrained spending and a growing economy, the Government has delivered the fastest fiscal consolidation in modern budget history, while continuing to deliver important new policy initiatives and reforms.
Major savings presented in this Budget are reflected in Attachment A below.
To view the attachment pleaseclick here.