Statement 2: Fiscal Outlook
The fiscal outlook for 2007-08 remains strong, with the Government forecasting its tenth budget surplus. Across the forward estimates period, the Government has maintained the budget in surplus after providing for personal income tax relief worth $31.5 billion, a $3.5 billion investment in Australia's education system and substantial new funding for road, rail and water infrastructure.
Budget aggregates
An underlying cash surplus of $10.6 billion is expected in 2007-08 compared with an estimated surplus of $9.7 billion at the Mid-Year Economic and Fiscal Outlook 2006-07 (MYEFO). In accrual terms, a fiscal surplus of $10.0 billion is estimated for 2007-08 compared to $9.9 billion at MYEFO. The fiscal outlook is for continuing underlying cash and fiscal surpluses in the forward years.
Table 1: Australian Government general government sector budget aggregates(a)
- All estimates are based on Government Finance Statistics (GFS) standards, but with goods and services tax (GST) revenue collected on behalf of the States and Territories netted off revenue and expenses.
- Excludes expected Future Fund earnings from 2005-06 onwards.