Australia has announced a budget surplus of A$15.8 billion (US$10.91 billion) for the fiscal year ending June 2024, marking the second consecutive year the country has reached this financial milestone. The announcement was made on Sunday by the center-left government, which attributes the surplus to a reduction in public spending.
Australians have adapted their spending habits due to the high cost of living, focusing mainly on essential services such as healthcare, amid persistent inflation and high mortgage rates. Finance Minister Katy Gallagher highlighted the surplus as a crucial part of the government’s strategy to ease inflationary pressures while providing relief to families facing economic hardship.
The final report on the 2023/24 budget revealed that the surplus was around 0.6% of gross domestic product. The government also noted that 87% of revenue increases were retained in the budget as part of austerity measures to combat inflation. This fiscal discipline led to a result exceeding the initial forecasts in May, which announced a surplus of 9.3 billion Australian dollars.
The current surplus follows that of the previous fiscal year, which stood at A$22.1 billion for the year ending June 2023, Australia’s first surplus in 15 years. Treasurer Jim Chalmers presented the 2023/24 surplus as evidence of the government’s commitment to responsible economic management. The exchange rate at the time of the announcement was 1 US dollar to 1.4489 Australian dollars.
Reuters contributed to this article.
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