CHART: How Australia's budget deficit is returning to a surplus

Fred Marie/Barcroft Media via Getty ImagesFred Marie / Barcroft Images / Barcroft Media via Getty Images

Treasurer Scott Morrison’s forecasts show the budget on track to return to balance.

The underlying cash deficit of $18.2 billion this financial year and $14.5 billion forecast in 2018 19 are the smallest since the GFC.

The underlying cash balance is forecast to return to balance in 2019-20 at $2.2 billion, before increasing to a projected surplus of $11 billion in 2020-21 and $16.6 billion in 2021 22.

The return to surplus in 2020-21 and continuing projected surpluses will enable a reduction in debt.

Net debt as a share of GDP is expected to peak at 18.6% of GDP in 2017-18 and is projected to fall to 14.7% by 2021-22.

Gross debt will peak in 2019-20 at less than 30% of GDP.

The return to surplus

After the budget returns to balance in 2019-20, a surplus of $11 billion is projected in 2020-21.

These Budget surpluses are projected to continue, building to a projected surplus of more than 1% of GDP by 2026-27.

Budget papers says better revenue collection means a saving on average of $2.7 billion per year on interest payments.

Budget debt

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