Aust. Budget surplus $7B

Press, 13 April 1989, Page 8

Aust. Budget surplus $7B

NZPA-AAP Canberra The Australian Federal Government will achieve a 1989-90 Budget surplus of at least sAusts.s billion (SNZ7.3 billion), with a further year of real spending cuts and reduced payments to the states, the Treasurer, Paul Keating, said last evening. In his economic statement, Mr Keating said the fiscal 1989-90 Budget surplus would “at least dqual” the current year’s forecast surplus of sAusts.s billion. His statement contained few specific economic forecasts, but he told a news conference he saw declining inflation and a lower current account deficit in 1989-90. Mr Keating also an-

nounced a tax-wage agreement with the A.C.T.U., consisting of income tax cuts and welfare increases costing sAusts.7 billion (SNZ7.6 billion) next financial year. It includes new wagefixing principles to hold 1989-90 wages growth around the current year’s 6.5 per cent. The deal with the A.C.T.U., replacing across-the-board wage demands, will result in wages being set by the Industrial Relations Commission in current proceedings and the May wage case. Mr Keating signalled Australia’s wage and salary earners could expect wage rises based on award restructuring of about $3O a week in 198990.