Yesterday’s Pre-Election Economic and Fiscal Update from the Treasury has given political parties their clearest picture yet of the economy they could inherit after November’s election.
The near-term fiscal outlook is brighter than expected. Treasury now forecasts a $6.8 billion deficit in 2026-27 – down from the $11.4 billion predicted at the May Budget – while higher tax revenue is expected to reduce government borrowing by $15 billion over the next four years.
