5min read
PREVIOUS ARTICLE US stocks score minor gains NEXT ARTICLE CommSec Daily Report Friday

WHAT HAPPENED TO THE FEDERAL BUDGET FROM DECEMBER 2019 TO JUNE 2020

EXTRA SPENDING

* An extra $57.7 billion went out the door to deal with the coronavirus pandemic

* This included $35 billion in JobKeeper payments to help impacted businesses and not-for-profits cover the cost of employees’ wages and temporary tax-free cash flow boosts

* Boosted payments for the unemployed, pensioners, carers and students ($13.1 billion)

* Funding to the states and territories to diagnose and treat patients ($2.9 billion)

* Purchase of personal protective equipment and other items ($2.1 billion)

* Extra payments under the NDIS ($2.1 billion)

* Bushfire response payments to the states and territories ($1 billion)

LOWER SPENDING

* Lower spending on road and rail infrastructure due to the pandemic and bushfires (down $1.7 billion)

LOWER REVENUE

* Total revenue was $486.3 billion in 2019/20, $24.9 billion lower than estimated in December

* GST was $5.3 billion below the December forecast on a receipts basis

* Total individual and other withholding taxes was $9 billion down on the receipts forecast

* Company tax was $13.4 billion down.