Tax & Spend
Australian Budget Seen Almost in Balance This Year, Debt to Drop
- Deficit forecast at A$1.1B in 2023-24 vs May budget’s A$13.9B
- Key commodities assumed to decline over the next four quarters
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Australia’s budget update showed the government’s books are in better shape than anticipated due to persistent strength in commodity prices and a tight labor market, though global risks are clouding the outlook.
The deficit is forecast at A$1.1 billion ($722 million) in the 12 months through June 2024, or 0% of GDP, a significant improvement from the May budget’s estimated A$13.9 billion shortfall, the Mid-Year Economic and Fiscal Outlook released by Treasurer Jim Chalmers and Finance Minister Katy Gallagher showed on Wednesday.