Australian Food and Grocery Council skeptical over government's 2013 budget
$19.4bn deficit forecast confirms their concern.
According to the Australian Food and Grocery Council (AFGC), consumer goods companies have been reporting for some time the weakness in the country’s economy, and the budget forecasting deficits of $19.4bn this financial year and $18bn next financial year underlines this. Treasurer Wayne Swan released the 2013-14 Australian Federal Budget on 14 May.
"Food and grocery manufacturers and suppliers have been reporting for some time the negative combined effects of the high Australian dollar, rising input costs and retail price deflation, creating the most challenging trading conditions for decades.
"The dramatic swing from a forecast surplus to deep deficits this year and next must raise serious doubts about the government's predicted return to surplus in 2016/17. Massive budget deficits create a climate of uncertainty for business, which undermines confidence and investment, essential to underpin jobs and growth,” said Gary Dawson, CEO of AFGC.
Dawson also said that there was little in the budget to stimulate growth and confidence, and nothing to relieve the increasing regulatory burden on business.
However, Dawson also shared that one of the few bright spots in the budget is that the widely discussed reduction in the Clean Technology Program did not occur. The program has been maintained and rephrased to take account of high demand.
