What a difference a year makes! Last May, the government didn’t even hand down the budget as the whole economy was shut down, businesses were closed and we were all stuck at home staring down the barrel of economic calamity. When the 2020-21 budget was finally released in October 2020, the final figure was a record deficit of $213.7 billion.
As we all know, Australia has come through the COVID crisis so far in quite good shape. Unemployment is a little higher than normal though nowhere near the 15% predicted, people are out spending, and businesses are making money. Some sectors of the economy are booming. This has resulted in far more tax collected and far less spent on welfare than planned. The government deficit for 2021 was only $161.0 billion.
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