Skip to content

Australia Treasurer Pushes Fiscal Credibility After UK Chaos

  • Chalmers has promised a ‘solid’ and ‘sensible’ first budget
  • Global and domestic events forcing last minute adjustments
Bloomberg business news
WATCH: Australian Treasurer Chalmers previews his first Budget, and discusses the impact of China’s economic slowdown on the Australian economy and the Stage 3 tax cuts planned by Australia in 2024 after the UK’s recent experience.Source: Bloomberg
Updated on

Australian Treasurer Jim Chalmers is aiming to establish the new Labor government’s fiscal credibility in his budget update, mindful of the chaos generated by the UK’s shock announcements and a domestic backdrop of hot inflation and rising interest rates.

Economists predict Tuesday’s fiscal blueprint will show an underlying cash deficit of A$35 billion ($22 billion), or 1.4% of GDP, in the 12 months through June 2023. That’s down from 3.4% of GDP forecast by the previous government when it laid out its budget plan in late March.