Treasurer of Australia, Scott Morrison has said that despite the turbulence in the global market, the economy will remain sound throughout the difficult phase.
With the ongoing financial volatility and economic decline in Chinese economy, the economical plans would be “exactly as we need it to be”, said Mr. Morrison.
A report by Deloitte Access Economics forewarned Australia about their slowest income growth recorded in more than half of century.
The unpredictable slowdown in Chinese economy was not expected. The government had strong fiscal and economic plans to revitalize the business with ample of job opportunities and had a prime focus on reducing the expenditures.
“We are not earning enough as a country and that obviously has an impact on revenues,” Mr Morrison told Sky News on Monday.
“But the fundamentals of the Australian domestic economy, I think, are very sound.”
He indicated the probability that budget may not return to surplus by 2020/21 as marked in December’s midyear budget update and said that that “in global environment things undergo changes and amendments”.
He said that the change in the tax mix was one of the biggest chances of economical growth.
Morrison also referred to the plan proposed by Financial Services Council to hike and broaden the GST. The plan suggested to cut the company tax rate to 22 cents in the dollar and hiking the GST to 15 per cent, and reaching fresh food, education and health care.
“You can change the tax mix and grow the economy” said Mr. Morrison.
Referring to December’s mid-year budget update, Resources Minister Josh Frydenberg said Mr Morrison and Finance Minister Mathias Cormann, had cleared the fact the revenue reduction had engendered the lowest commodity prices.
“Australia is a remarkably resilient and diverse economy,” Mr Frydenberg told ABC radio.
Economist Chris Richardson pointed out to Mr. Morrison to be ‘aware’ about the hard reality that the economy is OK, ‘the budget is not’.