Budget 2011

Ai Group 2011 Federal Budget Coverage

Review of the 2011-12 Federal Budget
The deficit for 2010-11 is estimated at $49.4 billion. The Federal Budget estimates a $22.6 billion deficit in 2011-12, improving to a $3.5 billion surplus in 2012-13. This is based on forecast real GDP growth of 4% in 2011-12 and 3¾% in 2012-13, though growth will remain uneven across the economy.

The key elements of the Budget for business were skills; infrastructure; migration; taxation; local industry participation; energy, climate and environment; and defence. The skills and infrastructure measures in particular are commendable, and will add to the productive capacity of the economy in the medium term.

While there was a welcome focus on fundamentals, more could have been done to offset the risks to the economy due to the impact of the strong dollar on sectors such as manufacturing, tourism and education, which are on the wrong side of the resource boom. While the economy is forecast to grow strongly at the aggregate level, this is masking widespread weakness and uncertainty across major sectors and giving rise to a lopsided economy. It is disappointing, despite the frequent acknowledgement of the problem, that little has been done by way of programs to address the lopsided nature of the economy by investing in innovation, business capability development and exporters.

The deferral of over $1 billion in defence capital investment is of significant concern and will erode defence capability at a time of increased pressure on the industry.

Read the full Review of the 2011-12 Federal Budget report online or download a PDF version.

Heather Ridout on business Budget reaction - 730 report
Heather Ridout speaks with ABC's Leigh Sales about the 2011-12 Federal Budget.  Watch this video online.

Heather Ridout on ABC Radio National Breakfast
Heather Ridout joins a panel of experts for post-budget discussion.

Heather Ridout on the impact of the Budget on manufacturing - The World Today

A Budget solid on fundamentals - Risks remain around lopsided economy "This year's Federal Budget is solid on the fundamentals of skills, infrastructure and fiscal responsibility. These investments will ease capacity constraints in these tight economic times. However, more could have been done to reduce the risks associated with the lopsided economy by investing in innovation, business capabilities and exporting," said Ai Group Chief Executive Heather Ridout. Tuesday 10 May 2011