Budget underlying cash balance in $22b deficit in year to March 2025
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The news: The federal underlying cash balance in the year to March 2025 was a $21.2 billion deficit, which the government notes was a $12.9 billion improvement since the mid-year update.
The numbers: Receipts were $7.4 billion higher than expected, while payments were $5.5 billion lower. The budget is still anticipated to finish the financial year in a deficit overall.
The headline cash balance was a deficit of $29.4 billion.
The fiscal balance for the 2024-25 financial year to March 31 was a $16.3 billion deficit.
The context: The management of the public purse strings has been a hotly debated issue during the election campaign.
Both sides of the political aisle have sought to raise concerns among voters about their opponent's needing to cut to afford promises or for overspending.
What they said: Treasurer Jim Chalmers said the government's hallmark was "responsible economic management".
"These figures show that thanks to Labor’s responsible approach, not only have we delivered the biggest nominal turnaround in the budget in a parliamentary term, the budget has continued to improve even since the end of last year," he said in a statement about the monthly budget statement.
Finance Minister Katy Gallagher said the budget position is better than forecast at the end of last year and the approach had allowed the government "to invest in the things that matter most to Australians — like Medicare, housing, and early childhood education and care".
The sources: Treasurer media statement, Monthly budget statement
