2024 Budget revenue upgrades smaller than expected
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The news: The Albanese government is not expecting to book as substantial revenue upgrades as some forecasters had anticipated in the upcoming Federal Budget. But it will bank almost all the upgrades it does achieve from 2023-24 in a bid to avoid contributing to upwards inflation pressure.
The numbers: In the May Budget, tax receipt upgrades are now officially forecast to reach $25 billion over the forward estimates. The last three budgets have averaged $129 billion.
The context: The government is still indicating that a surplus is possible for 2023-24 but has been warning for months about a weaker overall budget position. Treasurer Jim Chalmers has flagged smaller revenue upgrades amid a challenging global and local economy, rising unemployment and falling commodity prices as among the pressures.
What they said: "While our big focus in the near term remains easing inflation and helping relieve cost of living strains, it’s critical to also make room for urgent and unfunded priorities and invest in the future drivers of economic growth in the years ahead," Chalmers said.
"That’s why the May Budget will be carefully calibrated to the economic circumstances, striking the right balance between getting inflation under control, easing cost of living pressures, supporting sustainable growth and building fiscal buffers in an uncertain global environment."
The source: Federal Treasurer Media Release
