Government surplus getting bigger
The federal government has revised its budget surplus estimate to $17.3 billion, up $3.7 billion from the estimate in the May budget. $2 billion of this increase has come from reduced spending on social and welfare programs due to increased employment. Much of the surplus has been locked away in new social and infrastructure investment funds as further government spending could increase inflation, placing further pressure on interest rates. The government plans to use the investment funds to pay for health and education projects as well as infrastructure such as roads, rail and local community projects.