Prime Minister Julia Gillard: the budget will return to surplus by the fiscal year June 30, 2013 Australia must cut spending because there won\'t be any repeat of the windfall tax revenue generated between 2004 and 2007 by the mining industry\'s previous
expansion, Treasurer Wayne Swan said.
\"We shouldn\'t expect to see a repeat of the rivers of gold that flowed into the government coffers\" when an additional A$334 billion (Dh1.31 trillion) in tax revenue was generated, Swan said in his weekly economic notes.
\"The revenues will still be there, but we shouldn\'t expect to see\" a similar surge.
The strong Australian dollar and consumer caution after the global financial crisis are hurting parts of the economy, Swan said.
The Australian dollar on April 21 reached $1.0775, the strongest since it was freely floated in 1983. The currency\'s gains, spurred by revenue from shipments of coal and iron ore to China, have hurt tourism, manufacturing and education.
The March 11 earthquake and tsunami disaster in Japan is forecast to cut commodity export revenue by A$2 billion, while floods and a cyclone in Queensland state earlier this year will likely cost the economy A$9 billion, Swan said.
The government will make unpopular budget cuts to deliver a surplus as natural disasters crimp tax revenue and a strong currency puts pressure on tourism and manufacturing, Swan said April 20.
Prime Minister Julia Gillard has pledged to return the budget to surplus by the fiscal year ending June 30, 2013.
From : Gulf News