Fiscal Pressure Mounts as Key Sectors Swell Federal Budget
May 13, 2024The federal budget for 2024-25 is under pressure from five main sectors: aged care, the National Disability Insurance Scheme (NDIS), defence, health, and interest on government debt.
Collectively, these sectors are projected to make up nearly 35% of total government outlays, with an expected rise to almost 37% by the fiscal year 2024-25.
The NDIS is anticipated to undergo a 10% hike in its financial allocation.
Aged care funding has surged by $4.8 billion, while health spending is also on the rise with additional investments in Medicare and urgent care facilities.
Defence expenditure is up, but there are ongoing efforts by the government to recalibrate spending priorities within this domain.
Interest payments on government debt have decreased due to improved budget outcomes, which is a positive sign amidst other rising costs.
Inflation poses a significant risk, with government expenditures potentially fueling the issue further.
Despite attempts to curb spending, established programs and mandatory costs are driving a steady increase in government spending, heightening fiscal concerns.
Summary based on 2 sources
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Sources
The Sydney Morning Herald • May 12, 2024
The five key pressures on the budget – and how they’ve blown out over timeThe Age • May 12, 2024
The five key pressures on the budget – and how they’ve blown out over time