Deloitte Access Economics expects the federal government to post an underlying budget deficit of $33.5 billion for 2024–25, following a surplus of $15.8 billion for the 2023–24 financial year.
The Treasury had forecast a 2024–25 deficit of $28.3 billion and a cumulative deficit of $122.1 billion over the four-year forward estimates period. Deloitte now expects the latter figure to be $149 billion.
“That stunning turnaround in Australia’s fiscal fortunes would be the largest nominal contraction in the underlying cash balance on record, excluding the pandemic-hit budget of 2019-20”, Deloitte partner Stephen Smith said.
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