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.
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.
MORE FROM OUR FEDERAL BUDGET 2018 COVERAGE:
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- Here’s the full federal budget speech by Scott Morrison MP
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