Budget ‘propped up’ by NDIS
TREASURER Josh Frydenberg has unveiled a slender deficit — better than was predicted when he handed down the Budget in April.
But the Federal Government was yesterday forced to defend accusations from Labor of a huge underspend on the National Disability Insurance Scheme to achieve the betterthan-expected result.
The federal Budget was in a $700 million deficit in the 2018-19 financial year, according to the final budget outcome report.
The report showed a $13.8 billion improvement compared with the underlying cash deficit estimated at the time of this year’s Budget.
The Treasurer said an extra 300,000 jobs were created, which was “well above” forecast.
“The real story today is how more people in jobs and fewer people on welfare has driven higher receipts and lower payments as a result,” Mr Frydenberg said.
“In the year ahead, the economy will continue to be supported by the Government’s economic plan as outlined in this Budget, including the largest tax cuts in more than two decades, and our $100 billion 10-year pipeline of infrastructure spending.”
Opposition treasury spokesman Jim Chalmers said a $4.6 billion underspend on the NDIS was “propping up” up the Budget. The Government has blamed the underspend on a slower-than-expected uptake of Australians going on to the NDIS. “The Government should not be patting itself on the back for these numbers today,” Mr Chalmers said.
“We’ve got the slowest growth in this economy in the 10 years since the (global financial crisis). Wages are stagnant, household debt is at record highs.
“Improvement in the Budget will be built on underspends in the NDIS which short-change Australians with a disability by not providing the funding they need and deserve and were promised.”
Finance Minister Mathias Cormann blamed the state governments for the delays on getting people on the scheme.