Statement 2: Fiscal Outlook
The fiscal outlook for Australia remains sound, with the Government forecasting its ninth budget surplus in the last ten years. Across the forward estimates period, the Government has maintained the budget in surplus after providing personal income tax cuts of $36.7 billion, $993 million for increasing the income test threshold for the maximum rate of Family Tax Benefit Part A, $905 million for funding on health and medical research and $2.3 billion additional funding for road and rail infrastructure.
An underlying cash surplus of $10.8 billion is expected in 2006-07 compared with an estimated surplus of $9.7 billion at the Mid-Year Economic and Fiscal Outlook 2005-06 (MYEFO). In accrual terms, a fiscal surplus of $10.3 billion is estimated for 2006-07 compared to the $9.7 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.