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 said on Sunday, helped by lower spending.
Squeezed by the cost of living, Australians have prioritised spending on essential services, such as healthcare, as they grapple with stubborn inflation and high mortgage rates.
The surplus was a "key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure", Finance Minister Katy Gallagher said in a statement.
Figures from the Final Budget Outcome 2023/24 showed a surplus of about 0.6% of gross domestic product, while 87% of revenue upgrades returned to the budget bottom line as part of spending curbs to fight inflation, the Labor government said.
The upgraded result, exceeding a May forecast of A$9.3 billion, was due to lower spending, it added.
It followed Australia's first budget surplus in 15 years, one of A$22.1 billion for the year to June 2023.
The 2023/24 result proved the government's "responsible economic management," Treasurer Jim Chalmers added.
($1=A$1.4489)
Analysis:
The news of Australia achieving a second consecutive budget surplus is a positive sign for the economy and financial markets. The surplus indicates that the government is managing its finances responsibly, which can help in fighting inflation and providing relief to families. This news can have a direct impact on individuals as it may lead to more stability in the economy, potentially resulting in lower mortgage rates and increased access to essential services like healthcare. Overall, this development showcases Australia's strong economic management and can be seen as a positive signal for investors and consumers alike.
