Fed: Welfare highest 2001/02 Budget priority but no funds now

AAP General News (Australia)
12-14-2000
Fed: Welfare highest 2001/02 Budget priority but no funds now

CANBERRA, Dec 14 AAP - Welfare reform would be the highest priority in next year's
federal budget but funding was still to be decided, Family and Community Services Minister
Jocelyn Newman said today.

The government's welfare reform package released today contains no funding announcements,
and has no impact on this year's budget surplus.

Despite speculation the package could contain up to $1 billion in new spending, Senator
Newman said funding was not yet decided.

"No, I can't give you the figures now because cabinet hasn't decided finally on the
figures," Senator Newman told reporters.

"And some of the fine-tuning on the measures will determine some of the detail of the costs.

"But cabinet has made it very clear it expects it to be the highest priority in the next budget."

Concerns about the size of this financial year's surplus are believed to be behind
cabinet's reluctance to commit new funds.

Treasurer Peter Costello last month announced the surplus for 2000/01 was forecast
to be $4.3 billion - $1.5 billion higher than the original budget estimate.

However $300 million of that has since been committed to the government's road funding
package and a further $120 million to flood relief, reducing the projected surplus to
below $3.9 billion.

There also are fears the economy may slow much further than the budget estimate, which
would further cut into the surplus.

The surplus is also dependent on $2.6 billion from the sale of the third generation
mobile phone spectrum, which cannot begin before late February.

AAP/ss/daw/ps/bwl

KEYWORD: WELFARE BUDGET

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