The government plans to spend 270 billion Australian dollars (212 billion dollars) over the next decade on “upgrading defense capabilities to” promote open and peaceful Indo-Pacific “, documents from the Treasury Department say.
This includes AU $ 747 million ($ 585 million) to upgrade four military training areas in the Northern Territory where US Marines have a temporary base.
The government announced in March that it would begin manufacturing its guided missiles in close cooperation with the United States. The AU $ 1 billion ($ 784 million) project will produce the first Australian-made missiles since 1960.
The government also plans to spend AU $ 1.3 billion ($ 1.02 billion) over a decade to increase the capacity of the Australian Security Intelligence Organization, the country’s premier spy agency, to address national security threats.
“We. . . Treasurer Josh Friedenberg told Parliament that he outlined his economic blueprint for the fiscal year beginning July 1.
The government has spent an additional $ 17.7 billion ($ 13.9 billion) in infrastructure over 10 years and $ 15.2 billion ($ 11.9 billion) to invest in infrastructure.
The epidemic set the budget as an annual event in May last year that derailed the political calendar. The budget for 2020–21 was delayed until October. It estimates a decrease of AU $ 214 billion ($ 168 billion) in the current fiscal year.
This deficit is now estimated to be AU $ 161 billion ($ 126 billion). The government expects the deficit to continue to decrease over the next four years.
Net debt is estimated to reach AU $ 980.6 billion ($ 768.4 billion) or 40.9% of GDP in June 2025.
The government has said that unless the unemployment rate falls below 5%, it will not focus on reducing debt. The unemployment rate in March was 5.6% and is projected to fall to 5% and 4.75% for the next year 2021-22.
According to Treasury forecasts, Australia’s economic growth will increase from 1.25% in the current financial year to 4.25% in 2021-22.
As relations with China have deteriorated, Beijing has blocked Australian exports, including beef, wine, coal, lobster, timber and barley. But Australia’s most attractive exports, iron ore, are still keen buyers among Chinese steel makers.
Iron ore prices rose as steel mills last week, fearing trade restrictions, led to a lock in supply following suspended activities by China related to the Sino-Australia Strategic Economic Dialogue. It hit a new record price of $ 228 per metric ton ($ 251 a US ton) on Tuesday.
Tuesday’s budget assumes that by the end of March next year, the price of iron ore will fall to $ 55 per metric ton (US $ 60.50).
Friedenberg described the Treasury’s ore price forecast as “conservative”.
If the price stays above $ 150, it will exceed AU $ 12 billion ($ 9.4 billion) in government coffers, he said.
“Today we are giving a huge thanks to Western Australia and the iron ore industry because we are seeing record prices,” Fidenberg said, referring to the state where iron ore is mined.
Treasury documents state that China’s trade restrictions had limited impact on Australia’s economic recovery from the epidemic as many exports were redirected to other markets, Treasury documents said.
Australia has been relatively successful in preventing the spread of coronovirus but to slow vaccination.
Infulations began in February, with plans for a 4 million dose of Pfizer and AstraZeneca in a population of 26 million by the end of March. As of Monday, only 2.66 million doses had been injected.
Morrison is expected to await many more before the election demanding a fourth three-year term for his government.