Australia: Budget exceeded the Government's forecast - Westpac

Andrew Hanlan, Senior Economist at Westpac, explains that the Australia’s Budget Outcome for the 2017/18 financial year exceeded the Government's forecast in the May 2018 Budget.

Key Quotes

“The underlying cash deficit for 2017/18 came in at $10.1bn, -0.6% of GDP, some $8.1bn below the forecast of $18.2bn (-1.0% of GDP).”

“The net operating balance was a deficit of $4.0bn, a $8.6bn improvement on the May 2018 forecast.”

“The surprise was all but fully explained by an $8.5bn undershoot on expenses.”

“Revenue broadly met expectations. While taxation receipts fell short of forecast by $1.1bn this was fully offset by upside on dividend income.”

“Net general government debt at June 2018 is $342bn (18.6% of GDP), some $7.9bn lower than forecast.”