Australian Budget Deficit Lower Than Forecast for 2024-25
The Australian government announced its final budget outcome for the 2024-25 financial year, revealing a deficit of approximately 18 billion Australian dollars (about 11.8 billion US dollars). This figure is lower than the previously forecast deficit, signaling a positive shift in the nation's financial standing.
Key Budget Figures
Treasurer Jim Chalmers and Finance Minister Katy Gallagher presented the annual budget outcome on Monday, highlighting a final underlying cash deficit of just under 10 billion Australian dollars, or 0.4 per cent of gross domestic product (GDP), at the end of the 2024-25 financial year on June 30. This marks a significant improvement compared to earlier predictions.
- Final underlying cash deficit: just under 10 billion Australian dollars (0.4% of GDP)
- Gross debt: 928.6 billion Australian dollars (33.5% of GDP)
Improved Budget Outcome Compared to Forecasts
The government's Pre-election Economic and Fiscal Outlook (PEFO) 2025, released earlier this year, had projected a deficit of 27.9 billion Australian dollars for 2024-25. Even further back, the 2022 PEFO forecast a deficit of 47.1 billion Australian dollars in 2024-25, underscoring the substantial improvement in the actual budget outcome.
Government Response
Chalmers and Gallagher stated that final budget outcomes have been a combined 209 billion Australian dollars better than projected since the Labor Party assumed power in 2022. "In dollar terms, we've made more progress on the budget in three years than any government in history," they said.
"It's a reminder that we have one of the strongest budgets in the G20."
Factors Contributing to the Improved Budget Position
The improved budget position is attributed to a stronger labour market. The government officials noted that more Australians are employed and earning higher incomes, positively impacting the nation's revenue.
Australia's gross debt stood at 928.6 billion Australian dollars, 33.5 per cent of GDP, at the end of the 2024-25 financial year. The 2022 PEFO had forecast that gross debt would reach approximately 1.12 trillion Australian dollars in 2024-25.
National Biobank Platform Report
Separately, a new report indicates that an Australian national biobank platform, designed to streamline access to human biospecimens and data for biomedical research, has the potential to deliver 39 million Australian dollars (about 25.62 million US dollars) in annual benefits. This is according to the Commonwealth Scientific and Industrial Research Organization (CSIRO), Australia's national science agency.
These benefits are expected to arise from enhanced coordination among Australian biobanks and cohort studies, leading to improved research efficiency and outcomes.
