Swan scratches for savings

TREASURER Wayne Swan says significant savings are needed to offset further revenue writedowns in order to deliver a Budget surplus.

The high Australian dollar and a change in consumer behaviour are having an impact on the economy.

‘‘The weaker global outlook and recent decline in commodity prices will also hit our Budget revenues significantly,’’ Mr Swan said yesterday.

‘‘These headwinds mean we’ll have to find some substantial savings to return the Budget to surplus in 2012-13. But we remain committed to doing just that.’’

Treasury has forecast a $1.5 billion Budget surplus for 2012-13, a turn- around from a $43.7 billion deficit in the previous year.

Health Minister Tanya Plibersek said all government departments, including her portfolio, would have to find money in the mid- year Budget update, expected for release before the end of November.

MsPlibersek said savings could be found in administration while not cutting front-line health services.

‘‘When you make savings, there’s good ways to making savings, and bad ways, if you target waste and mismanagement,’’ she said.

But Australian Greens leader Christine Milne said the Government should be more flexible about returning the Budget to surplus.

‘‘The surplus is getting ridiculous in the discussion of the economy, because we’ve already seen public servants losing their jobs,’’ Senator Milne said.

‘‘We had 4000 public servants lose their jobs federally last year.’’

Mr Swan said delivering a surplus was the best defence for Australia amid worries over the global economy.

‘‘(It) shows we are committed to responsible budget management,’’ he said.

He said the global economic outlook remained uncertain. The International Monetary Fund last week lowered its forecasts for world growth this year and next.