Australia has posted a budget surplus consecutively for the second time after 16 years. Standing at $15.8 billion for the year to June 2024, the center-left government said on Sunday that this happened because of lower spending.
The last time Australia achieved back-to-back surplus was in financial years 2007 and 2008.
“In dollar terms, these are the biggest back-to-back surpluses on record,” Chalmers and Gallagher said in a joint statement.
“Our back-to-back surpluses are helping in the fight against inflation.”
Even though the country is grappling with the issue of housing rates and stubborn inflation, Australians have been able to prioritize essential services like healthcare. Finance Minister Katy Gallagher said in a statement, “A key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure”.
The final budget outcome figures indicate a surplus of about 0.6% of gross domestic product, while 87% of revenue upgrades returned to the budget bottom line. Also, the Reserve Bank of Australia held its key interest rate at a 12-year high of 4.35%. Governor Michele Bullock has cautioned that lending expenses are unlikely to come down anytime soon.
However, despite such positive initiatives and the squeezed cost of living, Chalmers said Monday that Australians shouldn’t necessarily expect a third surplus.
“We’re not complacent about the fiscal challenges that we confront,” he said.
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