Australia needs to control their spending and be more careful with their budget due to the expected slow growth in tax revenues. According to Treasurer Wayne Swan, taxes may be lower this year than the revenues from 2004 to 2007 brought about by the mining boom.

Swan added that the country should not expect the same level of tax revenues unlike the same amount of money generated during the discovery of the ‘rivers of gold.’ It brought about additional tax revenue amounting to A$334 billion ($359 billion). This is part of the economic notes drawn by Swan yesterday. Though the tax revenues will still keep coming, no expectations should be made.

There are other things that are continually hurting the country’s economy, including the cautionary spending of the consumers after the global financial crisis and the rise in Australian dollar. Today, the dollar hits $1.0776, the highest that it has been since 1983. This gain in the currency is due to the export of iron ore and coal to China. It also affected the country’s manufacturing, education and tourism industries.

World events, such as the March 11 earthquake and tsunami in Japan reduced export revenue by almost A$2 billion. Another A$9 billion was cut off from the revenue due to the cyclone and flooding in Queensland state at the start of the year.
Due to the massive increase in tax revenue due to the mining boom, Swan added that the economy outlook in the years to come will be much more positive. However, challenges are still to be expected.

The country already has plans for energy and minerals projects that cost about A$133 billion. In order to keep up with the expected challenges and pressures to the economy, spending should be controlled. Moreover, the estimated surpluses of the budget in the years to come should be spent well.