Coalition's income tax cuts remove buffer against economic shocks, report finds

Parliamentary Budget Office warns government faces major risks to being able to achieve projected surpluses

The Coalition’s lucrative income tax cuts have removed the “buffer” against revenue shocks, creating significant risk to the government’s budget projections in the years ahead, the Parliamentary Budget Office has warned.

The caution is contained in the PBO’s medium-term fiscal projections, released on Thursday, which also show that while spending restraint and lower debt repayments have improved the state of the budget, there are major risks to the government being able to achieve the surpluses it has forecast over the next decade.

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from World news | The Guardian https://ift.tt/2lgkCJ6