Federal Budget 2022: Analysis

With a federal election expected in May, this Budget attempts to lay out a steady course through the headwinds that remain.

There has been a considerable improvement in the Federal Government finances since last December's mid-year economic and fiscal outlook statement (MYEFO). The Budget forecasts the underlying cash balance for 2021-22 to be $79.8 billion, compared to MYEFO's estimate of $99.2 billion. However, it is expected that net debt will continue to grow until reaching 33.1 percent of GDP in 2025-26. The considerable challenge in managing budget deficits and government net debt over the next 10 to 20 y...

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Authors: David Heathcote, Alia Lum

Published Date: 30 March 2022