Federal Budget Economic Update by Riccardo Briganti – BT Financial Group Investment Specialist
The last systematic look at the Budget, the Mid-Year Economic and Fiscal Outlook (MYEFO), in December 2016, projected a deficit of $36.5 billion in the current fiscal year, falling to $28.7 billion in 2017/18. Over the period of the forward estimates—the four fiscal years to 2019/20—the deficit was expected to total $94.9 billion, $10.3 billion higher than in the 2016/17 Budget brought down seven months earlier, thus continuing a long pattern of increased forecast deficits. Both receipts and spending were revised down, with slower economic growth, both real and nominal, in the first two years, being the main reason. This has been a depressingly familiar tale in recent years.
The MYEFO projected a return to surplus in 2020/21.
For more information, please see the ‘Economics Report – Some Thoughts on the 2017 Budget’ report.
To view the Federal Budget Economic Update De-brief by Riccardo Briganti please follow the link below: