Government tips $9.3 billion surplus for 2023-24
Make us a preferred source
Make us a preferred source on Google
The news: The federal government has revealed it is likely to deliver a second surplus in 2023-34. The early release of these forecasts suggest the first consecutive budget surpluses in about two decades, but the next two years are likely to be weaker than previously expected.
The numbers: The $9.3 billion surplus is now forecast for 2023-24 following a $22.1 billion surplus in 2022-23. At the mid-year update, Treasury was expecting a $1.1 billion deficit for this current financial year.
Despite this, the budget position in 2024-25 and 2026-27 will be weaker than expected at the mid-year update. By 2027-28, the budget position is expected to again beat the mid-year forecasts. The government is saying this is largely due to unavoidable spending, with real spending to average 1.4% from 2022 to 2027-28. In 2023-24, 96% of revenue upgrades will be banked.
The context: The government has been saying it is aiming for a second surplus for weeks and has indicated this is part of their approach to taking pressure off inflation. Lower welfare payments and higher tax receipts have helped shore up the budget bottom line but there has been some recent volatility in iron ore prices.
Budget figures will be formally unveiled on Tuesday evening.
What they said: "The forecasted surplus has come on top, not at the expense, of helping those doing it tough," Treasurer Jim Chalmers said.
Finance Minister Katy Gallagher said more than $77 billion worth of "savings and reprioritisations" had been found since taking government.
"We understand there’s still pressures on the budget, including spending on the NDIS, aged care, hospitals, Medicare and debt interest," she said.
The source: Federal Treasurer media release
