The Strategist

Australian government forecasts first budget surplus in 15 years

05/10/2023 - 11:21

The Australian government declared on Tuesday that it intends to run a national budget surplus for the first time in 15 years because a robust labor market and robust extractive industry revenues have generated a sufficient amount of tax money.

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The government's intentions, however, will swiftly deplete the funds allocated for military, health care, and other priorities.

The Reserve Bank of Australia will use these funds to help the public cope with high energy costs and commodities prices, according to Finance Minister James Chalmers.

The minister added that the overall budget has improved. "Providing responsible and targeted support is a priority in our budget," he noted.

The minister said that "this budget captures 82% of the additional revenue," which was primarily generated by lower unemployment, accelerated job and pay growth, and higher pricing for important exports.