Australia records budget surplus for second consecutive year

Delhi Delhi. Australia has achieved a second consecutive budget surplus, of A$15.8 billion ($10.91 billion) for the year to June 2024, the center-left government said on Sunday, helped by lower spending. Australians, pressed by the cost of living, have prioritized spending on essential services such as healthcare, as they grapple with stubborn inflation and high mortgage rates. Finance Minister Katy Gallagher said in a statement that the surplus was “an important part of our plan to reduce upward pressure on inflation and provide relief to families we know are under pressure.”

The Labor government said final budget results showed a surplus of about 0.6% of GDP from 2023/24 figures, while 87% of revenue upgrades returned to budget lows as part of curbing spending to fight inflation. It said the upgraded result above May’s forecast A$9.3 billion was due to lower spending. This is Australia’s first budget surplus in 15 years, amounting to A$22.1 billion for the year to June 2023. Treasurer Jim Chalmers said the 2023/24 result proved the government’s “responsible economic management”.