RTRS - Budget cuts to boost Australia savings - RBA .  CANBERRA 1996-08-22  The Australian government 's plans to slash its budget deficit should make a useful contribution to national savings , the [START_ENT] Reserve Bank of Australia [END_ENT] ( RBA ) said in its annual report .  " The government 's announced plans to balance the budget , if realised , would make a useful contribution to raising national savings , " the RBA said .  The bank said there were concerns fiscal consolidation would unduly restrict growth , but evidence was ambiguous .  In its 1996/97 budget announced on Tuesday , the Australian Coalition government announced an underlying budget deficit of A$ 5.65 billion , and pledged to return the underlying budget balance to surplus by 1998/99 .  The budget deficit was A$ 10.3 billion in 1995/96 .  -- Sydney Newsroom 61-2 9373-1800  " Determined and credible efforts to rein in unsustainable fiscal positions ( are ) often rewarded by rising confidence , giving favourable effects on economic activity even in the short term , " it said .  " More generally , the long-term effects of fiscal consolidation are clearly positive , with higher saving tending to promote economic growth by raising investment and lowering long-term real interest rates , " the RBA said .
Reserve Bank of Australia