Statement 1: Fiscal Strategy And Budget Priorities
Fiscal outlook
The fiscal outlook for Australia remains strong, with the Government forecasting a tenth budget surplus in 2007‑08.
An underlying cash surplus of $10.6 billion is expected in 2007-08 compared with an estimate of $9.7 billion at the Mid-Year Economic and Fiscal Outlook 2006-07 (MYEFO). Underlying cash surpluses continue to be projected across the forward estimates which add to national saving and foster sustainable economic growth.
Table 1: Budget aggregates
- Excludes expected Future Fund earnings.
In accrual terms, a fiscal surplus of $10.0 billion is now expected for 2007-08, compared to a surplus of $9.9 billion estimated at MYEFO.
Australia's sound fiscal position compared to the OECD average is highlighted in Chart 1. The fiscal position amongst OECD countries, on average, is expected to remain in deficit in 2007-08, notwithstanding strong global growth.
Chart 1: International comparison of budget balances
Source: OECD data are for the total general government sector and sourced from OECD Economic Outlook 80, December 2006. Australian data are for the Australian Government general government sector and sourced from Statement 13.