Deloitte Budget Monitor predicts significant shift in national debt ahead of federal budget

High commodity prices and tax revenues are expected to have a positive impact on national debt. (Reuters: David Gray/File)

Multi-billion-dollar tax revenue and high commodity prices will likely result in a far healthier federal budget than initially predicted, according to Deloitte's annual Budget Monitor.

The report shows higher prices for iron ore and gas will result in $83 billion in additional revenue over the forward estimates and predicts the cash deficit will shrink to $8.7 billion this financial year.