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Australia readies for end of 'age of entitlement' budget

Published on May 11, 2014 12:20 PM
 
Australia's first budget under conservative Prime Minister Tony Abbott (above) to be released on Tuesday promises to end the "age of entitlement", with spending cuts and tax rises expected as the nation strives to rein in its deficit. -- FILE PHOTO: REUTERS 

SYDNEY (AFP) - Australia's first budget under conservative Prime Minister Tony Abbott to be released on Tuesday promises to end the "age of entitlement", with spending cuts and tax rises expected as the nation strives to rein in its deficit.

After 22 years of continuous economic expansion, Australia is confronting growth which remains stubbornly below trend and unemployment rates of around 6.0 per cent.

At the same time, Australia's budget deficit for the 2013-14 financial year is forecast to have ballooned to A$47 billion (S$55 billion), with fiscal deficits projected through to 2016-17.

The government argues that without change, the budget will be in deficit for the next decade and Mr Abbott has called on all Australians to help "chip away at the debt and deficits".

 
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