Federal budget $27bn in the red and won’t return to balance for a decade, Myefo forecasts

The Guardian

Budget downgrade blamed on Australian economy being hit harder than anticipated by higher interest rates, cost of living pressures and global uncertainty

Australia’s federal budget is on-track for a deficit of $26.9bn this financial year and is not projected to return to balance until 2034-35, according to the mid-year economic update (Myefo).

On Wednesday the treasurer, Jim Chalmers, and finance minister, Katy Gallagher, released the update, which breaks Labor’s streak of two full-year budget surpluses with a deficit in its third year, albeit one that is $1.3bn smaller than projected in May.

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