The federal budget is headed for a deficit of $26.9 billion this financial year – $1.3 billion better than the estimate in May – but in the following three years the budget is forecast to be deeper in the red than earlier forecast.
The budget update, released by Treasurer Jim Chalmers and Finance Minister Katy Gallagher on Wednesday, shows a sluggish Australian economy and a cumulative deficit of $143.9 billion across the four years of the forward estimates. This compares to $122.1 billion in the May budget.
The update predicts a return to budget balance only in 2034-2035.
