Australia unveils $11.4 billion in virus outbreak stimulus

Australia on Thursday put forward a USD 11.4 billion stimulus package meant to stave off a recession due to the impact of the virus outbreak on its economy.

The package includes cash payments for small businesses and welfare recipients to counter the impact of the disease, which has infected more than 126,000 people worldwide.

Australia has recorded 127 cases of the virus and three deaths. The World Health Organization declared Wednesday that the global coronavirus crisis is now a pandemic causing, jolting markets worldwide and raising the sense of urgency surrounding efforts to contain it.

The Australian government will spend 11 billion Australian dollars (USD 7.1 billion) before June 30, the end of the financial year, with the remainder to be spent before July 2021.

Prime Minister Scott Morrison said the package would provide an immediate stimulus to Australia's economy. Up to 6.5 million people nearly a quarter of the country's population on government benefits, including pensioners, the unemployed and family tax benefits, will receive one-off payments of USD 485.

"The biggest beneficiaries of that will be pensioners," Morrison said. "They comprise around half of those who will receive those payments." Morrison said small and medium businesses will receive cash payments of between USD 1,294) and USD 16,184 to help pay wages or hire extra staff.

"This plan is about keeping Australians in jobs," he said. "This plan is about keeping a business in business and this plan is about ensuring the Australian economy bounces back stronger on the other side of this and, with that, the budget bounces back with it."