82% Of Revenue Windfall To Be Saved, Near-Term Surplus Projection

The press is reporting this morning that today’s budget will show a FY 2022-23 surplus of $4bn and a $143bn improvement over the next four years driven by the strong labour market, inflation-related bracket creep and stronger commodity prices. The surplus is not going to be sustained with Treasury forecasts due to show deficits, although revised lower, over the rest of the forecast horizon due to rising structural spending.

• Treasurer Chalmers has said that 82% of the revenue windfall will go into budget repair.
• Treasury forecasts are also expected to show positive real wage growth in 2023-24 and moderating inflation over the forecast time period.
• Chalmers said “We have found ways to take the pressure off (energy) bills rather than add to these cost-of-living inflationary pressures in the economy.”
• See MNI’s Budget: Possible Near-Term Surplus But Deficits Thereafter for more budget commentary.
  - The Australian