Delivering the 2009-10 Budget
As a consequence of the financial crisis, the government developed the 2009-10 Budget in an environment of considerable economic uncertainty. Prior to the 2009-10 Budget, Finance analysed new expenditure proposals, assessed and validated expenditure costings, and assisted with the development of major savings proposals. Finance provided significant advice and support to the 2009-10 Budget deliberations of the Strategic Priorities and Budget Committee of Cabinet, and the Expenditure Review Committee of Cabinet. In total, 134 Green Briefs were prepared to provide policy and savings advice in relation to proposals for the 2009-10 Budget, compared to 104 in the 2008-09 Budget.
Finance worked on 601 expense and capital measures for the 2009-10 Budget, comprising $26.9 billion of expenditure over five years. This compared to the 633 measures Finance contributed to for the 2008-09 Budget comprising $18.2 billion of expenditure over five years. For the 2008-09 Mid-Year Economic and Fiscal Outlook (MYEFO), Finance worked on 80 expense and capital measures. The department also contributed to 107 expense and capital measures for the UEFO. In total, the department worked on 788 measures in 2008-09 compared to 709 measures in 2007-08.
Major expenditure initiatives announced in the 2009-10 Budget to which Finance directly contributed by providing policy briefing and costing analysis included:
- Secure and Sustainable Pension Reform – $14.2 billion over four years to increase pensions and $1.8 billion in assistance for carers over five years;
- Nation Building for the Future – including $8.5 billion over six years for road, rail and ports infrastructure projects;
- An Innovation and Higher Education System for the 21st Century – $5.7 billion over five years;
- The National Broadband Network – $4.7 billion over three years primarily as an equity injection for the new National Broadband Network Company;
- Clean Energy Initiative – including $4.5 billion over nine years for a range of carbon capture and storage projects and large-scale solar technologies;
- Hospital infrastructure, cancer care and medical research infrastructure – $3.2 billion over seven years;
- Higher education, vocational education and training and research infrastructure – $2.6 billion over six years;
- Jobs and Training Compact – $1.5 billion over five years; and
- Paid Parental Leave – $0.7 billion over five years to assist parents to combine work and family commitments.