Responsible budget management has seen Australia's fiscal position remain strong with a budget surplus of $10.6 billion forecast in 2007-08. This is consistent with the Government's medium-term fiscal strategy of maintaining budget balance, on average, over the course of the economic cycle.
In 2005-06 the Government eliminated net debt. As a result, we no longer have net interest payments, which have fallen around $8.8 billion since 1996‑97. Australia is part of a very small group of OECD countries that has no net debt.
Net worth, which is a broader measure of the Government's financial position, is expected to be positive in 2008-09.
The ageing of the population, together with rising age pension, health and aged care spending, will open a gap between revenue and expenses in the long run. A strong financial position means that the Government is well placed to deal with these emerging fiscal pressures.
10 budget surpluses
Net interest payments have fallen as a result of the elimination of net debt
4 2007‑08 Budget Overview