<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>In Oz, not Leegime lah!
Published May 13, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>AUSTRALIAN BUDGET
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>A$22b infrastructure spending to save jobs
First recessionary Budget in 2 decades will create record A$58b deficit
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(CANBERRA) Australia yesterday unveiled a sweeping A$22 billion (S$24.5 billion) infrastructure-building plan in its annual Budget aimed at saving more than 200,000 jobs amid a 'brutal' global downturn.
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</TD></TR><TR class=caption><TD></TD></TR></TBODY></TABLE>Handing down Australia's first recessionary Budget in almost two decades, Treasurer Wayne Swan launched what he called an 'unprecedented push for jobs and productivity' as the nation battles to climb out of a crippling recession.
Mr Swan said the infrastructure spending came on top of stimulus packages worth more than US$50 billion rolled out over the past six months and would help put Australia in a far better position than many other advanced economies to deal with the downturn.
'The global recession has been unleashed on Australia with a brutal, uncompromising force,' Mr Swan told parliament in his Budget speech.
'Our actions are expected to support up to 210,000 jobs and reduce the peak in the unemployment rate by 1.5 percentage points below the double-digit peak it would reach if we listened to those who said we should do nothing.'
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</TD></TR><TR><TD bgColor=#fffff1><TABLE border=0 cellSpacing=0 cellPadding=0 width=124 align=center><TBODY><TR><TD vAlign=top>'The global recession has been unleashed on Australia with a brutal, uncompromising force.'
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>Mr Swan's bold Budget for the next fiscal year beginning July 1 would create a record A$58 billion deficit - equivalent to 4.9 per cent of gross domestic product.
The government plans to sell a record A$60 billion of bonds next fiscal year to fund spending as the nation's first recession in two decades reduces tax revenue.
The amount is almost double an estimated A$35 billion of debt sales in 2008-2009 and up from A$5.1 billion issued in 2007-2008, according to Budget papers released in Canberra yesterday.
Mr Swan said the government would commit A$22 billion to improving transport, communications, energy, education and health infrastructure - on top of the stimulus packages already announced.
Of the amount, A$8.5 billion would go towards critical road, rail and port building, while A$3.2 billion was earmarked for health and hospitals.
Another A$3.5 billion would fund carbon capture projects over nine years and the development, over six years, of solar power technologies capable of producing the equivalent energy of a large coal-fired power station.
The rest of the money would support education and research initiatives, as well as the roll-out of a previously-announced A$43 billion broadband network in collaboration with the private sector.
According to Budget papers, the infrastructure spending is the largest in Australia's history.
The net impact of it and other budgetary measures would be to lift GDP by 0.75 per cent in 2009-10 and 0.5 per cent in 2010-11.
The Budget documents also predict that GDP would contract by a relatively mild 0.5 per cent in the next fiscal year before expanding by 2.25 per cent in 2010-11.
The economy is forecast to stagnate in the current fiscal year.
Bolstering roads, rails and ports would lift Australia's export capacity by improving access for global markets to mineral resources and commodities, positioning it to capitalise on an Asia-led recovery, the Budget papers said.
Mr Swan said the 'nation-building' infrastructure plan would lay the foundation for a deficit exit strategy which was expected to lift the economy back into the black by 2015-16, supporting long-term growth and prosperity. -- AFP, AP, Bloomberg
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Published May 13, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>AUSTRALIAN BUDGET
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>A$22b infrastructure spending to save jobs
First recessionary Budget in 2 decades will create record A$58b deficit
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>(CANBERRA) Australia yesterday unveiled a sweeping A$22 billion (S$24.5 billion) infrastructure-building plan in its annual Budget aimed at saving more than 200,000 jobs amid a 'brutal' global downturn.<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD></TD></TR></TBODY></TABLE>Handing down Australia's first recessionary Budget in almost two decades, Treasurer Wayne Swan launched what he called an 'unprecedented push for jobs and productivity' as the nation battles to climb out of a crippling recession.Mr Swan said the infrastructure spending came on top of stimulus packages worth more than US$50 billion rolled out over the past six months and would help put Australia in a far better position than many other advanced economies to deal with the downturn.
'The global recession has been unleashed on Australia with a brutal, uncompromising force,' Mr Swan told parliament in his Budget speech.
'Our actions are expected to support up to 210,000 jobs and reduce the peak in the unemployment rate by 1.5 percentage points below the double-digit peak it would reach if we listened to those who said we should do nothing.'
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD vAlign=top>
- Mr Swan,
</TD></TR><TR><TD vAlign=top>in his budget speech in parliament
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The government plans to sell a record A$60 billion of bonds next fiscal year to fund spending as the nation's first recession in two decades reduces tax revenue.
The amount is almost double an estimated A$35 billion of debt sales in 2008-2009 and up from A$5.1 billion issued in 2007-2008, according to Budget papers released in Canberra yesterday.
Mr Swan said the government would commit A$22 billion to improving transport, communications, energy, education and health infrastructure - on top of the stimulus packages already announced.
Of the amount, A$8.5 billion would go towards critical road, rail and port building, while A$3.2 billion was earmarked for health and hospitals.
Another A$3.5 billion would fund carbon capture projects over nine years and the development, over six years, of solar power technologies capable of producing the equivalent energy of a large coal-fired power station.
The rest of the money would support education and research initiatives, as well as the roll-out of a previously-announced A$43 billion broadband network in collaboration with the private sector.
According to Budget papers, the infrastructure spending is the largest in Australia's history.
The net impact of it and other budgetary measures would be to lift GDP by 0.75 per cent in 2009-10 and 0.5 per cent in 2010-11.
The Budget documents also predict that GDP would contract by a relatively mild 0.5 per cent in the next fiscal year before expanding by 2.25 per cent in 2010-11.
The economy is forecast to stagnate in the current fiscal year.
Bolstering roads, rails and ports would lift Australia's export capacity by improving access for global markets to mineral resources and commodities, positioning it to capitalise on an Asia-led recovery, the Budget papers said.
Mr Swan said the 'nation-building' infrastructure plan would lay the foundation for a deficit exit strategy which was expected to lift the economy back into the black by 2015-16, supporting long-term growth and prosperity. -- AFP, AP, Bloomberg
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