Key points are as follows…
· The 2015-16 Budget has seen a shift in focus from budget repair towards supporting growth and fairness.
· Thanks to another blow to revenue the budget deficit for 2015-16 is now projected to be $35bn (compared to just $17bn in last year’s budget); return to budget balance or surplus has been pushed out a year to 2019-20.
· New spending (for example on child care and a small business tax cut) has been more than offset by various savings.
· This year’s Budget should be far more positive for confidence than last year’s, but a return to surplus is looking more distant.
· The impact on the share market is likely to be minimal.