Debt is set to hit $1trillon, writes CHARLIE MOORE

Debt is set to hit $1trillon, writes CHARLIE MOORE

Desperate Times Require Desperate Action: Why Josh Frydenberg Had No Choice But Saddled The Nation On $ 1 Trillion In Debt To Bring Us Out Of The Worst Recession Since The 1930s, Writes CHARLIE MOORE

  • The budget leaves Australia with a budget deficit of $ 213 billion and enormous debt
  • Australians will pay for the coronavirus pandemic for years to come
  • But the budget helps those who have lost jobs and are pumping money into the economy

When Josh Frydenberg tabled his first budget last year, he pondered how the government would spend within its means for the first time since 2007 and 2007 Nation would soon be back in the black.

Sixteen months later, the treasurer forecast the largest deficit this country has ever seen on Tuesday as he desperately tries to get Australia out of “the worst global economic crisis since the Great Depression” – a downturn caused almost entirely by the coronavirus.

The result will be a record budget deficit of $ 213 billion and gross debt of $ 870 billion this year, rising to $ 1 trillion in 2022.

If you don’t laugh, cry: Treasurer Josh Frydenberg managed a smile as he announced the biggest budget deficit of all time

The budget brings with it a record budget deficit of $ 213 billion and gross debt of $ 870 billion this year, rising to $ 1 trillion in 2022. Image: Aussies in Sydney on Budget Day

The budget brings with it a record budget deficit of $ 213 billion and gross debt of $ 870 billion this year, rising to $ 1 trillion in 2022. Image: Aussies in Sydney on Budget Day

That means Australians and their children will pay for the pandemic in the years to come – but Mr Frydenberg had no choice.

The virus tore up the budget stewardship framework.

The necessary government lockdowns to quell the disease that put a million Australians into the dole queues meant a moral responsibility to support these workers and provide the economy with cash to bring these jobs back.

On Tuesday evening, Mr Frydenberg released a budget to get money into people’s hands quickly.

Driving the second tier tax cuts – rather than the controversial third tier tax cuts – was wise because Labor backs them, which means the changes will pass parliament quickly and give the Aussies a tax boost in weeks.

Tier 2 cuts, originally due in 2022, give middle-income Aussies a tax break of $ 2,160 – while Tier 3 cuts, due in 2024, give the rich a $ 11,000 bonus.

On Tuesday evening, Mr Frydenberg released a budget to get money into people's hands quickly. Pictured: workers in Sydney

On Tuesday evening, Mr Frydenberg released a budget to get money into people’s hands quickly. Pictured: workers in Sydney

Comprehensive tax changes in the federal budget made it easier for small businesses to offer their employees advantages. Pictured: A woman is making coffee in Sydney

Comprehensive tax changes in the federal budget made it easier for small businesses to offer their employees advantages. Pictured: A woman is making coffee in Sydney

Mr. Frydenberg realized that moving forward on the third tier cuts would have sparked a political battle with Labor and decided to leave them aside.

The budget has also brought forward around 80 shovel-ready infrastructure projects to quickly create 30,000 jobs at a cost of $ 7.5 billion.

Not only are Mr Frydenberg’s actions targeted quickly, but they are also targeted at those who have lost the most from the pandemic: women, young people and entrepreneurs.

To get half a million young people back into work, the government pays companies $ 200 a week for every unemployed worker aged 16-29.

US $ 750 million in federal funding will be made available for the second M1 between Coomera and Nerang. The picture shows the impression of an artist

US $ 750 million in federal funding will be made available for the second M1 between Coomera and Nerang. The picture shows the impression of an artist

To help expectant mothers, they can access parental leave even if they have lost their jobs during the pandemic.

Businesses are given a range of relief measures, including tax refunds if they make a loss and the ability to deduct new assets from their tax bills.

These two measures alone will deliver $ 31.6 billion in tax breaks, create 50,000 jobs, and boost the economy by around $ 10 billion in 2021-22.

“Our plan will stimulate the economy and our plan will create jobs,” said Fyrdenberg in a socially distant parliament.

With the nation having to live with Covid-19 by 2022, Australians hope he’s right.

Prime Minister Scott Morrison nudges Treasurer Josh Frydenberg with his elbow after handing over his second federal budget

Prime Minister Scott Morrison nudges Treasurer Josh Frydenberg with his elbow after handing over his second federal budget

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