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The federal government has armed the economy with a $42 billion arsenal with which to fight the advancing global recession.
The multi-billion dollar National Building and Jobs Plan was announced by Kevin Rudd yesterday and is expected to support up to 90,000 jobs in 2008-09 and 2009-10.
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The initiative, which includes plans for tax cuts for small businesses, infrastructure investment and immediate stimulatory cash payments, is also expected to boost economic growth of around ½ per cent of GDP in 2008-09 and around ¾ to 1 per cent in the following financial year.
The delivery of the stimulus package also coincided with the Reserve Bank’s decision to drive the cash rate to its lowest level since the 1960s.
In his address to the nation yesterday Mr Rudd said he recognised that a temporary budget deficit may not be popular, “but that is the global reality we face with virtually all governments now in deficit”.
“I cannot remove the impact of the global recession on Australian jobs. But by government action we can reduce it.”
