...MELBOURNE (S&P Global Ratings) May 11, 2021--The fiscal recovery outlined in Australia's budget is occurring as we expected, but downside risks remain, underpinning our negative outlook on Australia, S&P Global Ratings said today. Australia's success in containing coronavirus and managing new community transmissions, while providing temporary and targeted emergency economic support, is propelling a strong economic rebound. This is driving government revenues higher while containing outlays compared with its previous expectations. Soaring prices for iron ore, Australia's most important export, are also pushing receipts higher, as are strong employment conditions. The upturn in revenue will afford the government some headroom for the new measures announced today, such as extending tax offsets for low- and middle-income earners, business tax relief measures, and additional spending on aged care, infrastructure, mental health, and childcare. Today's budget confirms that the pandemic, and the...
