While the deficit for this year is expected to be $4.2bn, the Treasurer announced return to surplus of some $7.1bn estimated for 2019-20. At least 1/3 of that forecasted surplus can be attributed to the collapse of the iron ore tailings dam in Brazil and the unexpected increase in the global price of iron ore this has caused which in turn has boosted government revenue.
This point is to highlight how fragile the budget forecast process can be.
Key Budget and Economic Metrics from the Budget Papers
| |
2017-2018 |
2018-2019 (fcast) |
2019-2020 (fcast) |
| Budget (deficit) surplus - bn. |
(10.10) |
(4.20) |
7.1 |
| As % of GDP |
(0.5) |
(0.2) |
0.4 |
| Real GDP Growth |
2.80 |
2.25 |
2.75 |
| Unemployment |
5.40 |
5.00 |
5.00 |
| CPI |
2.10 |
1.50 |
2.75 |
Want to learn more about the Budget?
Check out our 2018 budget summaries:
Individual
Superannuation
Business
Social Security & Family Assistance
Other
Sources:
https://www.budget.gov.au/2019-20/content/overview.htm
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