Labor unveils smaller-than-expected budget deficit, credits strong jobs market and wages growth
The Albanese Government has revealed its first deficit since returning to power, with the $10b figure coming in far lower than the almost $30b deficit forecast ahead of the May election.
Treasurer Jim Chalmers and Finance Minister Katy Gallagher are releasing the final Budget outcome figures for 2024-2025 on Monday, which show the bottom line is $18b better off thanks to a stronger-than-expected jobs market and wages growth.
“In dollar terms, we’ve made more progress on the Budget in three years than any government in history. It’s a reminder that we have one of the strongest budgets in the G20,” Dr Chalmers said in a statement.
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By continuing you agree to our Terms and Privacy Policy.The final Budget outcome is also expected to show average real spending at 1.7 per cent across the seven years to 2028/29.
Senator Gallagher argued that a key reason for the better revenue result was that “more Australians are in secure jobs, earning higher wages”.
“At the same time as revenue has strengthened, we’ve delivered cost-of-living relief, tax cuts for every taxpayer, cheaper childcare, energy bill relief and record investments in Medicare.”
However, Liberal Senator Jane Hume told Sky News the Government was “spinning” a deficit into good news.
“A deficit at a time when we have full employment, when we have increasing inflation, this is simply bracket creep. It’s bracket creep and high commodity prices.”
“And now they’re saying a (lower) deficit is good news? Well, give me a break. This is a government that has allowed their budget to run out of control.”
Monday’s release of the budget paper coincides with the Reserve Bank beginning two days of deliberations on whether to cut interest rates again.
