Australia Achieves Second Consecutive Budget Surplus

SYDNEY (Reuters) – Australia has achieved a second consecutive budget surplus, standing at A$15.8 billion ($10.91 billion) for the year to June 2024, the centre-left government announced on Sunday, aided by lower spending.

Due to the rising cost of living, Australians are focusing their spending on essential services, such as healthcare, while dealing with ongoing inflation and high mortgage rates.

The surplus is described as a “key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure,” said Finance Minister Katy Gallagher in a statement.

Figures from the Final Budget Outcome 2023/24 indicated a surplus of approximately 0.6% of gross domestic product (GDP), with 87% of revenue upgrades returning to the budget bottom line as part of spending curbs to combat inflation, according to the Labor government.

This updated result exceeds the May forecast of A$9.3 billion and is attributed to lower spending.

This follows Australia’s first budget surplus in 15 years, which was A$22.1 billion for the year ending June 2023.

The 2023/24 result demonstrates the government’s “responsible economic management,” added Treasurer Jim Chalmers.

($1=A$1.4489)