Fiscal Outlook

• Consistent with ongoing strength in the economy, the fiscal outlook remains positive.

- In accrual terms, the fiscal surplus for 1999-2000 is expected to be $4.9 billion (0.8 per cent of GDP) - $555 million lower than estimated at the time of the 1999-2000 Budget.

- In cash terms, in 1999-2000 an underlying surplus of $3.4 billion (0.6 per cent of GDP) is forecast - $1.8 billion lower than estimated at the time of the 1999-2000 Budget.

• Continued fiscal and underlying surpluses are projected over the forward estimates period, albeit weaker than projected at budget time. Downward revisions to the surpluses in the outyears primarily reflect the impact of policy decisions taken since the 1999-2000 Budget.

- Major new policy decisions since the Budget include Australia's peacekeeping and humanitarian operations in East Timor and legislative changes to The New Tax System.

• Australia is expected to better the Government's target of halving the net debt to GDP ratio over the five years to 2000-01.

Fiscal Balance

Summary Table - Commonwealth Budget Aggregates.

Key Features
Domestic Economic Outlook
International Economic Outlook
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