Treasury, Finance make few budget changes

by | April 20, 2022 12:04 | News

An independent assessment of the federal government’s financial books has proved to be little different from the budget handed down by Treasurer Josh Frydenberg last month.

The heads of the departments of Treasury and Finance signed off on Pre-election Economic and Fiscal Outlook (PEFO) on Wednesday, as part of the Charter of Budget Honesty that was introduced by former Liberal treasurer Peter Costello. 

PEFO’s forecast for the deficit for the 2021/22 financial year was $79.8 billion, the same as in the budget, but for 2022/23 it is now fractionally smaller at $77.9 billion compared with $78 billion in the budget.

Further out, the deficit for 2025/26 is now $42.9 billion rather than $43.1 billion, while other deficit projections were unchanged.

Economic forecasts for growth, unemployment, inflation and wages were the same as in the budget.

“The economic and fiscal outlook has not materially changed since the publication of the 2022/23 Budget,” PEFO says.

“While there has been recent movement in some economic indicators, taking into account all available information, our judgment is that these have not materially altered the economic and fiscal outlook.”

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