Surplus in 'striking distance' as Chalmers attempts to play it safe
The government will bank nearly $10 billion in budget savings to avoid stoking further inflation.
Federal Treasurer Jim Chalmers has opened the door to a budget surplus in May after a massive windfall from increased tax revenue and higher iron ore prices was banked rather than spent on cost of living relief to avoid stoking further inflation.
But economists are warning that despite the improved fiscal position the government still has significant work to do in reforming the long term structural pressures on the nation’s finances.
On three occasions in a press conference on Wednesday Chalmers pointedly noted the budget was now within “striking distance” of a surplus, which if achieved would be the second successive year where the federal budget was in the black after years of deficits.
“We are not yet forecasting a second surplus but we are within striking distance,” Chalmers said. “We have given ourselves a chance but we are not there yet and we have been deliberately cautious and deliberately conservative.”
