The Federal Budget is projected to produce a $4 billion surplus despite the predicted $78bn deficit in the Coalition’s March 2022 budget. However, there has been a warning from experts that without proper future reform, revenue is likely to fall short of spending and remain in a structural deficit.

The Albanese government has vowed to remain cautious for the remaining two months of the 2022-23 financial year. The government’s objective with this vow is to separate itself from past government mistakes in predicting surpluses that did not occur. This is in reference to the 2019 budget. It was predicted to be in surplus by Liberal Treasurer Josh Frydenberg, however, ultimately resulted in a record deficit after the Covid-19 outbreak. The Prime Minister, Anthony Albanese stated he will quote “pay down debt” with the projected surplus and reiterated the importance of