Labor to detail first back-to-back budget surplus since 2008
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The news: The Albanese government will on Monday confirm a second consecutive budget surplus of $15.8 billion for the 2023-24 financial year, $6 billion more than forecast in May.
The numbers: This follows a $22.1 billion surplus in 2022-23, making it the first back-to-back surplus since 2006-07 and 2007-08.
Gross debt improved to $906.9 billion, down from a forecasted $923 billion.
The context: The 2023-24 final budget outcome will be detailed by Chalmers and the finance minister, Katy Gallagher, on Monday.
The budget is, however, expected to dip back into the red in the current financial year, partly due to a drop in key commodity prices like iron ore and LNG. The May federal budget showed Australia would record a deficit of $28.3 billion in 2024-25 and of $42.8 billion in 2025-26.
The surplus was achieved entirely through lower government spending, helping to pay down debt and reduce inflation pressures, Treasurer Jim Chalmers said in a statement before the update.
Total revenue was lower than forecast, but the government says 87 per cent of revenue improvements since the pre-election economic and fiscal outlook (PEFO) were returned to the budget. It also found over $77 billion in savings since taking office.
What they said: “Our bigger than expected surplus in the year just gone is entirely due to lower spending, with the tax take also lower,” Chalmers said in the statement.
“These surpluses help pay down Liberal debt, help fight inflation and haven’t come at the expense of cost-of-living relief for people under pressure.”
The source: Treasurer statement
