FEDERAL BUDGET FORECASTS

The federal government’s budget black hole will persist for the foreseeable future, but there will be notable improvements from the new financial year.

By the end of 2025/26 the budget will be $103.6 billion better off, compared to the most recent estimates.

This assumes the deficit peaked in the 2021/22 financial year and contracts slightly to $78 billion in 2022/23, before falling more sharply in the out-years.

UNDERLYING CASH DEFICITS IN 2022/23 BUDGET:

2021/22 – $79.8 billion (*$99.2b previously)

2022/23 – $78.0 billion deficit (*$98.9b)

2023/24 – $56.5 billion deficit (*$84.5b)

2024/25 – $47.1 billion deficit (*$57.5b)

2025/26 – $43.1 billion deficit (*$68.1b)

* Mid-Year Economic and Fiscal Outlook (December 2021)

Source: Treasury

 

(Australian Associated Press)