A fair and responsible path to Budget balance

The Government is choosing to act with fairness to maintain our path back to balance in 2020-21

Budget on track for balance

The Government has made the right choices to ensure we live within our means.

Deficits are forecast to decline every year over the forward estimates period to a projected surplus of 0.4 per cent in 2020-21.

The underlying cash balance is projected to improve from a deficit of $29.4 billion in 2017-18 to a surplus of $7.4 billion by the end of the forward estimates period.

Legislative delays

The Government will reverse a number of savings measures that continue to be held up in the Senate. This has resulted in deterioration in the bottom line of more than $13 billion. Despite this, the Budget balance has still seen an improvement since the 2016-17 Mid Year Economic and Fiscal Outlook.

Policy decisions have improved the Budget

The fair responsible choices in the Budget have led to an improvement in the bottom line of $6.3 billion over four years from 2017-18 to 2020-21 as a result of policy decisions. This builds on more than $25 billion of budget repair measures the Government has implemented since the 2016 election and more than $100 billion since the 2013 election.

The Government will continue to responsibly curb spending growth in order to protect our economic resilience.

Restoring the Budget to balance will provide the extra buffer necessary to protect Australians from economic shocks that could impact their livelihoods.

After abstracting from Senate positions, all new spending in this Budget has been offset by savings decisions, and the Government has ensured that unnecessary spending is reduced, reprioritised and redirected to policies that enhance growth.

The Government’s focus on managing recurrent revenue and expenses is shown in the improvement to the net operating balance. Operating surpluses mean we do not require debt to fund everyday expenses.

Strengthening the economy will ensure sustainable growth in revenue that will support our path back to balance and create the space that would be needed to consider potentially reducing the tax burden in the future.

The Government will redirect spending to more efficient and productive purposes while ensuring taxpayers can receive the essential services they rely on.