Economics
Australia Injects a Double Dose of Economic Stimulus
- Forecast deficit is larger than projected six months ago
- Budget unveiled hours after central bank cut interest rate
Australia Injects Double Stimulus to Boost Growth
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Australia’s economy received a double shot of stimulus as the government handed down an expansionary budget hours after the central bank eased policy for the first time in a year.
Treasurer Scott Morrison unveiled a plan on Tuesday to cut company taxes, boost infrastructure spending and provide income-tax relief, as he forecast a A$37.1 billion ($28.1 billion) deficit in the 12 months through June 2017. The fiscal blueprint, aimed at boosting jobs and growth just two months before an election, followed the Reserve Bank of Australia’s decision to cut interest rates to a record low 1.75 percent.