Source: Commonwealth Bank of Australia
Businesses large and small, infrastructure, agriculture and housing feature in fiscal measures designed to lift the economy out of the coronavirus-induced recession.
Wednesday, 7 October 2020: With a forecast deficit of $213 billion, described as the largest in Australia since the end of World War II, it was little wonder that the 2020 federal budget had economists reaching for their dictionaries to describe the history-making moment.
“Extraordinary” said CBA’s Chief Economist Stephen Halmarick. But then, as he added: “Extraordinary times lead to extraordinary outcomes”.
While the macro figures and income tax cuts grabbed the immediate headlines, behind the numbers were some big ticket measures targeted at key sectors of the economy – all designed to combat the impacts of the pandemic-inspired recession and underwrite growth through a jobs-led re-bound.
According to Mr Halmarick and the CBA Global Markets and Economic Research team in their Federal Budget 2020/21 Update (“Federal Budget 2020/21 – Extraordinary times, extraordinary outcomes”), published today (7 October 2020), it is the economic support provided by such fiscal policy efforts that is a vital part of the path to recovery.
“This support has been enhanced in the Budget through a combination of income support programs, health related spending, income tax cuts, employment support programs, infrastructure spending and a focus on regional spending,” the team states.
For the full article and a budget wrap-up, visit CBA’s 2020 Federal Budget Special.