Treasurer Jim Chalmers says May budget surplus is 'within reach'
Make us a preferred source
Make us a preferred source on Google
The news: Treasurer Jim Chalmers has said a second consecutive budget surplus is “within reach” as Australia climbed higher in an International Monetary Fund ranking of global budget positions.
The numbers: Following the release of the latest IMF Fiscal Monitor report, Chalmers said in a statement that Australia had achieved “a remarkable” improvement in the rankings and last year had the second strongest budget balance as a share of GDP among G20 countries, up from equal 14th position in 2021. Australia ranked ahead of Germany, Japan, the UK and the US.
The context: Chalmers noted that the report recommended governments make further efforts to repair their fiscal positions while also taking into account the changing outlook for growth. Fiscal consideration, the IMF said, needed to be calibrated to strike a balance between fiscal risks and the strength of private demand.
The Treasurer said that was "consistent with the government’s approach to ensuring our budget settings are right for the evolving circumstances, including the much smaller revenue upgrades expected in the May Budget and the shift in the balance of risks in our economy from inflation to growth".
What they said: “A second surplus in next month’s Budget remains within reach,” Chalmers said in the statement.
“Like our first two budgets, this year’s Budget will continue to put a premium on what’s responsible, affordable and methodical.
“We know a stronger budget position is not an end in itself but an important way to provide cost-of-living relief without adding to inflation, build foundations for sustainable economic growth and fund the nation’s most pressing priorities.”
The source: Treasury media release
