Australia Treasurer Unveils Budget Of Restraint

Australia's Treasurer Jim Chalmers unveiled a budget of restraint on Tuesday, promising relief from the rising cost of living without adding to inflation.

Delivering the Labor Government's first Federal Budget on Parliament, Chalmers said his responsible approach to revenue upgrades and spending restraint means gross debt as a share of GDP remains lower than at the Pre-election Economic and Fiscal Outlook in each year of the forward estimates.

In 2022-23 and 2023-24, when inflationary pressures are most acute in the forecasts, additional tax receipts have been returned to the budget, new policy decisions have been largely offset and real growth in spending decline, Chalmers told lawmakers.

Net debt is seen at 23.0 percent of GDP in 2022-23 and is projected to finally hit 28.5 percent of GDP in 2025-26.

The underlying cash deficit is forecast to be A$36.9 billion, or 1.5 percent of GDP in 2022-23, which is A$41.1 billion lower than at the PEFO. The cumulative deficit until 2025-26 is projected to total A$181.8 billion.