Budget surpluses, while delivering personal income tax cuts and funding key priorities

Funding Australia's spending priorities

The Government's record of strong fiscal management means that, even in these times of significant global uncertainty, we have the capacity to address key spending priorities.

Preparing for the future

In this Budget the Government expects to deliver its sixth surplus in 2003-04 while meeting the key challenges facing our nation. This Budget continues the Government's record of responsible fiscal management while delivering personal income tax cuts and spending on priority areas for Australia's future.

Specifically, the Government is committing an additional $2.1 billion in this Budget to enhance the Australian Defence Force's capacity to defend Australia's interests at home and abroad. This is on top of the significant funding increases agreed since the Government came to office.

Another $411 million is being provided to improve our ability to identify and respond to security threats to our nation.

This Budget also includes measures to promote the accessibility and affordability of Australia's education and health systems.

This Budget funds further reforms to provide a better quality of, and greater access to, higher education. These reforms, costing $1.5 billion over four years, will help to make our people and our nation more productive.

To ensure the effectiveness of the health system, funding of $917 million over five years will be provided for the A Fairer Medicare package and $42 billion over five years for public hospitals under the Australian Health Care Agreements.

These initiatives are helping to build our future, while maintaining sound budget outcomes.

Australia would be better prepared to meet future challenges if the Senate passed a number of initiatives announced in last year's Budget. When implemented, these initiatives will help ensure that future governments can afford our welfare and health systems.