The Treasurer announced a deficit of $78 billion... but what does that actually mean?
Background: Every year around May, the Federal Government announces the country's budget for the next financial year. Because it's an election year, we got it last night.
What happened: The Treasurer revealed how much the Government expected to earn from income taxes, company taxes, GST and other Federal income... as well as how much it expects to spend on things like infrastructure and community initiatives.
What else: In this Budget, we saw the Government introduce an additional tax offset of $420... and a deficit of $78 billion.
💡 Each year, the Federal Government sets a budget, which could end up with a surplus (i.e. the Government's income is greater than its expenses) or a deficit (i.e. its expenses are greater than its costs).
💡A budget surplus is pretty hard to come by these days. In fact, the last time Australia had an annual surplus was back in 2008. Ya know, back when Flo Rida's Low was the hottest hit.
💡This year, the Government's $78 billion deficit means Australia's total debt is now approximately $1 trillion. So, future generations will be paying that off for a long time.
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