David Uren, Economics correspondent

THE federal Government is understood to be preparing to unveil an innovative plan in the May budget to invest likely future surpluses for the specific benefit of Australia's infrastructure.

Surpluses will be given to the Government's sovereign wealth fund, the Future Fund, to manage, but investment earnings will be directed to infrastructure projects overseen by a new entity called the Building Australia Fund.

Finance Minister Lindsay Tanner said the amount of the initial investment in the fund would not be decided until after the size of the 2007-08 budget outcome was known in September.

But it is likely to receive the lion's share of this year's surplus, which economists expect to reach at least $15 billion.

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Posted by dcjaya at April 9, 2008 2:18 PM