Photos-and-Video: Record Federal Budget Surplus Amid Lower Spending

Surplus Highlights

The federal budget surplus for 2023-24 has been recorded at $15.8 billion, which is bigger than expected. This demonstrates the effectiveness of lower government spending measures. The surplus equates to 0.6 per cent of GDP and follows a surplus of $22.1 billion in the previous financial year.

Economic Management Promises

Treasurer Jim Chalmers attributed the positive outcome to improved revenue, diligent savings efforts, and spending restraint. "We are the first government to post back-to-back surpluses in nearly two decades," noted Dr. Chalmers. "These surpluses facilitate paying down Liberal debt while aiding inflation control without foregoing relief for households under pressure."

Forecasts and Inflation

While the budget surpassed the $9.3 billion surplus forecast, it also greatly improved upon earlier predictions of a significant deficit. Nonetheless, inflation continues to pose challenges, with the Reserve Bank maintaining interest rates steady at 4.35 percent for the seventh consecutive meeting. The board has noted that inflation will not return to target levels until 2026.