The transition to non-resource drivers of growth is likely to be
slower than previously forecasted. As such employment growth is
expected to remain subdued and the Australian economy will lose out
on collection of tax receipts.
Economic outlook
Since the 2013 Pre-Election Economic and Fiscal Outlook (PEFO)
the Budget deficit is now expected to total $123 billion over the
forward estimates. A $47 billion deficit is expected in 2013-14,
which is 3% of Gross Domestic Product (GDP).
The Government is committed to taking hard decisions to
"live within its means".
Australia is still transitioning from resource-investment led
growth to broader sources of growth. However, with the release of
the Mid-Year Economic and Fiscal Outlook (MYEFO), the Government is
now expecting this transition to occur slower than previously
forecasted. As a result of the transition, real GDP is expected to
grow slower at a rate of 2.5% in 2014-15 compared to the announced
3% in the
