Australia Speeds Up Infrastructure Spend to Build Jobs, Economy

(Bloomberg) -- Australia's government is bringing forward an extra A$7.5 billion ($5.4 billion) of spending on roads, railways and bridges as it seeks to bolster the nation's economic recovery.

Prime Minister Scott Morrison in a statement Monday said the plan lifts the government's total spending on shovel-ready transport projects to A$11.3 billion and supports 30,000 direct and indirect jobs.

It's part of the government's plan to pressure its state counterparts to lift their own spending on roads and bridges as it seeks to revive the economy from its first recession in almost three decades.

Read More: Australian Minister Urges States to Step Up Infrastructure Spend

”These commitments will help to get the economy moving,” Treasurer Josh Frydenberg said in the statement.

Australia is expected lift the debt ceiling above A$1.1 trillion to support its economic recovery plan, and bring forward income tax cuts that were slated for 2022 by two years when it releases its budget on Tuesday, according to reports. On Saturday the government announced an expansion of the First Home Loan Deposit Scheme to encourage construction.

The nation's debt burden may jump to A$712.1 billion, or 38% of GDP, in the current fiscal year, according to the median estimate in Bloomberg's economists survey.

RELATED COVERAGE:

• Australian Treasurer Says Budget Assumes Virus Vaccine Next Year
• RBA Likely to Stand Pat, Providing Clear Air for Fiscal Program
• Australian Spending Bonanza in 2020-21 Budget: What To Watch

©2020 Bloomberg L.P.