The coalition government has announced the smallest deficit in ten years after a larger deficit than forecast at the time of the budget.
Treasurer Josh Frydenberg made the announcement saying the final budget outcome for the 2017–
18 financial year recorded an underlying cash deficit $19.3 billion better than estimated at the time of the 2017–18 budget.
At $10.1 billion, just 0.6 per cent of GDP, the cash deficit is the smallest in ten years said Mr Frydenburg.
“Stronger economic growth and much stronger employment growth than anticipated at the time of the 2017–18 budget have driven increases in personal income tax and company tax receipts, with total receipts $13.4 billion higher than expected at the time of the budget,” he said in a release.
Total payments were $6.9 billion lower than forecast due to welfare payments being lower because of welfare dependency for working age Australians being at its lowest level in 25 years.
Mr Frydenberg said that economy had now completed its 27th consecutive year of growth and more than one million jobs had been created since 2013.
The release of the final budget outcome builds on the national accounts earlier this month which showed 3.4 per cent economic growth throughout the year.
That growth was faster than the G7 countries and hadn’t been seen since the height of the mining boom in 2012.
Real GDP in 2017–18 was stronger than anticipated with a nominal GDP growth of 4.7 per cent in 2017–18.
Net Future Fund earnings were also $1.1 billion higher than expected at the time of the 2017–18 budget which are excluded from the underlying cash balance.