Fed: Budget surplus to be $6.2 billion: Treasury=3

AAP General News (Australia)
12-21-2004
Fed: Budget surplus to be $6.2 billion: Treasury=3

Treasury revised up expected household consumption to 4.5 per cent from May's 4.25 per cent.

Private investment for dwellings is not expected to show any growth, up from a minus
three per cent forecast made in the May Budget.

Non-farm product GDP is expected to grow at three per cent, while farm product GDP
is tipped to slip two per cent.

The terms of trade are expected to improve 7.25 per cent.

The better surplus has been driven by strong direct taxation, as well as an increase
in indirect tax income.

Telstra's dividend is expected to be up $516 million, interest on term deposits should
reap an extra $326 million, and higher petroleum royalties should be $242 million better.

The strong growth in imports should lift custom duty income by $378 million, while
the stronger dollar should cut foreign currency exchanges - particularly for the Defence
Department - by $135 million.

Net debt is expected to fall to $19.7 billion from a Budget forecast $24.7 billion.

Policy decisions announced during the election will cost $854 million this financial
year, $1.8 billion next year, and $2.2 billion in 2006-07 and 2007-08.

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KEYWORD: MYEFO 3 CANBERRA

2004 AAP Information Services Pty Limited (AAP) or its Licensors.