On Thursday, The Australian administration will reveal the biggest budget deficit till date after WWII, led by the massive decrease in the government revenue due to lockdown and financial support and stimulus packages provided to aid the economy from COVID-19 crisis.
The treasury department of Australia, led by Josh Frydenberg, will include the financial estimates for the year 2019-20 and 2020-21 only as compared to the traditional approach of 4-year estimates in budget.
Experts believe the deficit to be more than $200 billion for the current financial year and the report will update a net figure for 30th June 2020 and forecasts for 30th June 2021. The forecast speculates the business investment to be down by 6% in 2019-2020 and by 12.5% in 2020-2021. However, the mining sector opposes this negative trend line and shows a positive growth of 4% and 9.5% for the years 2019-20 and 2020-21, respectively. The company tax receipts are also down by north of $25 billion, with revenues decreasing $12.1 billion and $13.2 billion for the years 2020-21 and 2019-20, respectively.
The Australian government believes to be preserving around 7 lakh jobs by means of fiscal interventions. The current unemployment rate in Australia is around 7.4% and is projected to touch 8% by October. The fiscal interventions by the government have saved the unemployment rate from going to a peak of 13%, as per government officials.