Budget deficit to be in 'low double digits': Chalmers
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The news: Treasurer Jim Chalmers has revealed that the budget deficit for the 2024-25 financial is on track to be "in the low double digits", marking an improvement of more than $10 billion on the original forecast.
The context: Treasury last year forecast the deficit for the latest financial year to be $28.3 billion but over recent months it has become clear that a greater-than-expected tax collection from workers and businesses will lead to an improved position.
The smaller deficit — which follows the back-to-back surpluses Labor produced in its first two years in government — is still unlikely to lead to surpluses in the coming years with the budget in structural deficit amid spiralling costs in defence, aged care and health.
Chalmers told Question Time that the final budget outcome in September will show the deficit is "much smaller" than originally forecast.
What they said: "The latest advice is that when the final budget outcome comes out in September it will show that the deficit for the year just finished is much smaller," Chalmers said.
"I inform the House that the 24-25 deficit is now expected to be in the low double digits. That is less than half what we expected at budget time and it is around one quarter of what we inherited from those opposite," he said.
"This is another demonstration of our responsible economic management."
The source: Parliament
