Australia is poised to achieve its first budget surplus since 2008, owing to a combination of increased tax
revenue from a fully employed economy and elevated commodity export prices. According to Treasurer
Jim Chalmers, the forthcoming budget for the 12 months ending June 2023 is expected to reveal a
surplus of approximately A$4 billion (US$2.7 billion). The announcement, scheduled to be delivered at
7.30 pm local time on Tuesday, May 9, 2023, will also outline smaller deficits in the future than initially
projected.
The robust fiscal position is primarily attributed to Australia’s strong economic recovery from the
COVID-19 pandemic, resulting in a substantial rise in employment levels and a surge in commodity
prices. The country’s successful management of the pandemic has led to a swift reopening of the
economy, leading to improved business confidence, heightened consumer spending, and a surge in
exports, resulting in increased tax revenue.
“Our responsible economic management is all about spending restraint, substantial savings redirected to
other priorities, and modest but meaningful tax changes,” said Treasurer Jim Chalmers in a statement
Monday, May 8th. The forecasted surplus in Australia’s budget is a result of careful and measured
government expenditure, allocating resources to programs and initiatives that have a higher social or
economic impact, and improving the efficiency and equity of the tax system. Achieving a budget surplus
is not an end in itself but rather a means to achieve broader economic and social objectives.
