In Figure 5below,we see the dollar increases in Australian government spending by sector. We calculate these as the increase in the budget for 2020-21 over the budgeted expenditure a year ago in the Budget for 2019-20. Expenditure on Social and Welfare increases by $47.4 billion. Health spending rises by $12.0 billion. Education rises by $5.4 billion. Transport and Communication rises by $4.0 billion.Then comes Defence which rises by $2.2 billion.
Figure 5: Estimates of Increases in Australian General Government Expenses by Function
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SOURCES: Budget Paper No.1: Budget Strategy and Outlook 2019-20 & 2020-21 Statement 5, Expenses and Net Capital Investment; Morgans
What this Budget does
Not since Chifley, has there been a vision of Australian national recovery on a scale such as now contemplated by Scott Morrison and Josh Frydenberg. A $1.3 billion modern manufacturing plan will target six national manufacturing priorities:
Food and beverage manufacturing;
Resources technology and critical minerals processing;
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- Medical products;
- Recycling and clean energy;
- Defence industry and
- The space industry.
Together with what the government has announced since the start of the crisis, measures in this Budget will see $14 billion in new and accelerated infrastructure projects that will support a further 40,000 jobs.
The Treasurer announced $2 billion in new funding to build water infrastructure across the country as part of our national water grid including dams, weirs and pipelines.
This article was first published by Morgans.
The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual’s relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so. Those acting upon such information without advice do so entirely at their own risk.
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