Australian gov't forecasts first budget surplus in 15 years

CANBERRA, May 9 (Xinhua) -- Australia's Treasurer has confirmed the federal budget for 2023-24 will feature an expected first surplus in over a decade.

Ahead of handing down the budget on Tuesday night, Jim Chalmers revealed it would forecast a small surplus of approximately 4 billion Australian dollars (2.7 billion U.S. dollars).

If realized, it marks the first time the balance has been in surplus in 15 years and a turnaround from previous projections.

In March 2022, the former government forecast a budget deficit of 78 billion AUD (52.9 billion dollars) for 2022-23, which was then revised down to 36.9 billion AUD (25 billion dollars) by Chalmers in October.

Compared to the figures, Chalmers said the budget position had improved by 143 billion AUD (96.9 billion dollars) over the four years to 2025-26.

High commodity prices, low unemployment and a boost in migration to Australia are regarded as reasons for the improvement.

"In dollar terms, it will show the biggest budget turnaround on record as a consequence of our responsible economic management," Chalmers said on Tuesday morning.

"We are now forecasting a surplus this year, smaller deficits after that, and less debt throughout the budget."

Despite the upswing, the budget is still expected to return to deficit as the government plans with a spending program aimed at relieving cost-of-living pressures for Australians amid inflation challenge.