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Budget Surplus To Be Higher Than Projected, Outlook Weak

AUSTRALIA

Treasurer Chalmers has said that the FY22-23 budget surplus is on track to be materially larger than the $4.2bn expected in the May budget due to higher mining profits, lower outlays and higher revenue related to the strong labour market. The fiscal outlook will be impacted by the slowdown in growth from significant monetary policy tightening and “global challenges”. Chalmers is still looking at 1.5% growth for FY23-24 after 3.25% this FY, but many believe that this is too optimistic as it assumed a cash rate below where it is now. But he sees inflation as Australia’s greatest challenge.
- Reuters, The Australian

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