Government spending has also increased, but much more moderately than revenue. The healthier bottom line means net debt is expected to be equal to 21.6% of GDP in 2022-23 and average less than 24% of GDP over the Budget estimates, down from the 26% forecast in October last year. ![]() An underlying cash surplus of $4.2 billion is now expected in 2022-23 and the cumulative underlying cash deficit has been revised down by $125.9 billion over the five years to 2026-27 The surge in revenue and comparatively small increase in expenses delivered a $41.1 billion turnaround in the fiscal deficit that was forecast last October.The Government announced $42.6 billion of spending on new policies over five years, including the $14.6 billion cost-of-living package Government payments are forecast to be $26.7 billion higher over the five years from 2022-23.The Australian economy outperformed Treasury’s forecasts from last October, adding an estimated $134.8 billion in revenue in 2022-23 and the following four years through a surge in both company tax and personal income tax.An underlying cash surplus of $4.2 billion is now forecast for 2022-23. Lower NDIS and interest costs mean there has been a very substantial improvement in the budget bottom line over the next decadeĭeloitte’s Budget digest provides insights on nine major themes below.Ī stronger-than-expected Australian economy has driven a surge in tax revenue and a $41.1 billion turnaround in the fiscal position that was forecast in the October Budget. Stronger budget position: The structural budget deficit is expected to be 0.5% of GDP in 2032-33, compared to 2.0% in the October budget.Defence funding to increase beyond the forward estimates: The cost of the Defence Strategic Review means an increase in spending over the medium term, with Defence spending expected to rise above 2.3% of GDP in 2032-33.This includes $2.0 billion for the establishment of a new Hydrogen Headstart program and $1.3 billion in funding to establish the Household Energy Upgrades Fund to support home upgrades that improve energy performance and save energy Significant funds towards the climate transition: More funding was allocated towards climate action than originally expected.Dedicated women’s budget statement:Explores factors influencing women’s economic equality and outlines key measures to advance gender equality in Australia – focusing on achieving economic equality, ending violence against women, increasing women’s representation in leadership and decision-making and improving women’s health and wellbeing.Assistance with cost of living: $14.6 billion package includes a range of payments for low- and middle-income families including energy bill savings, cheaper medicines, modest increases to JobSeeker and rent assistance.The 2023-24 Budget includes a substantial improvement in the Federal Government’s fiscal position from the October Budget, largely due to much higher personal income tax and company tax receipts than previously assumed. ![]() Gross debt is estimated to peak 10.4 percentage points lower, and five years earlier compared to the October Budget. Savings on interest costs and the NDIS are anticipated to help to improve the structural budget position over the next decade. The long-term forecast position looks promising. ![]() A modest surplus of $4.2 billion – the first surplus in 15 years – is a welcome surprise built on tailwinds: favourable commodity prices, a strong labour market and higher migration in the short-term. On Treasurer Jim Chalmers handed down the 2023-24 Federal Budget aimed at addressing challenging headwinds including higher interest rates, inflation and cost of living pressures. Telecommunications, Media & Entertainment Infrastructure, Transport & Regional Government
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