Treasurer Jim Chalmers unveils $200b in budget improvement
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The news: The government has released early details ahead of the mid-year economic and fiscal outlook (MYEFO) to compare the pre-election budget expectations with new projections to 2027-28.
Details released by the government suggest the budget has had the largest nominal improvement in a Parliamentary term and is on track for a $200 billion improvement in the six years to 2027-28.
The numbers: Compared to pre-election projections, the budget position is expected to be $27.1 billion better off in the four years to 2027-28, with gross debt $177 billion lower in 2024-25 than those forecasts.
Average real spending growth is expected to total 1.5% over the six years to 2027-28.
What they said: "Responsible economic management is the hallmark of the Albanese Government’s first term and you’ll see that in the mid-year update," Treasurer Jim Chalmers said in a statement.
"The budget position is cumulatively $200 billion better than what we inherited, even with some slippage as a result of global uncertainty and unavoidable spending on things like veterans’ payments and Medicare.
"... Our economic plan is all about fighting inflation, easing pressure on Australians and getting the budget in better shape, without slashing essential services or ignoring the risks to growth."
Finance Minister Katy Gallagher said the government had made progress on the budget by finding savings and delivering cost of living relief.
"By finding these additional savings, we’re in a better position to fund the things that matter most for people, like cheaper medicines and housing," she said.
The source: Treasurer media release
