CANBERRA, Sept 21 (NNN-XINHUA) – Australia’s budget deficit has improved by tens of billions of dollars, according to Treasurer, Jim Chalmers, yesterday.
Chalmers said, the budget deficit for the financial year 2021-22 has come in 50 billion Australian dollars (33.5 billion U.S. dollars) lower than projected by the government in March.
Ahead of the final budget outcome being released later this month, Chalmers said, 28 billion Australian dollars (18.8 billion U.S. dollars) of the improvement came from higher-than-expected revenues – mostly a result of high global commodity prices – 20 billion Australian dollars (13.4 billion U.S. dollars) from payments that were lower than expected.
However, the deficit will still be “a little bit north” of 30 billion Australian dollars (20.1 billion U.S. dollars) and Chalmers warned, it could worsen as a result of a downturn in coal and iron ore prices.
“And what we know from the Final Budget Outcome is that, this substantial improvement is welcome, but the bulk of it is driven by temporary factors,” he told reporters in Canberra.
Chalmers and Finance Minister, Katy Gallagher, said at the press conference, Australians should expect a bread and butter budget, including a “substantial but temporary” lift in taxes.
“And we’ve come in, and we’re telling you that there are enormous pressures and the Budget is in structural deficit,” said Gallagher.
“And we’re doing what we can in the Oct Budget, to go through the previous measures, the waste audit, having a look at making sure that the spending that’s currently being provided is going where we need it the most.”
The government’s tax on petrol will be reinstated at its full rate on Sept 29, after it was cut earlier in 2022, in response to a global spike in oil prices.
Chalmers said, deciding not to extend the relief measure was “difficult” but projected fuel prices would not spike overnight.
“We’re under no illusions that this will be difficult for people. It’s a difficult decision for us to take as well,” he said.– NNN-XINHUA