Revenue raising vs spending cuts – The budget balance

In the hundreds and hundreds of pages of documents accompanying the Albanese government’s federal budget, there are two tables that arguably illustrate the nature of the challenges the budget and the nation face on the road ahead.

On the revenue side, the budget projects that in 2029-30, the changes to negative gearing and capital gains will deliver $2.28 billion in additional flows to Treasury coffers.

On the other side of the coin, the budget projects that by reducing the spend on consultants, contractors and labour hire, the federal government would spend $2.72 billion less on this type of expenditure than anticipated at last year’s Mid-Year Economic and Fiscal Outlook (MYEFO).