“Ai Group welcomes the improved budgetary outlook released today by the Treasurer, Josh Frydenberg. With the economy performing above expectations, both revenues and the budget bottom line are now anticipated to be stronger in the current and subsequent years,” Ai Group Chief Executive, Innes Willox, said today.
“The improvements in the fiscal outlook rest on a continuation of the healthy economic momentum we have seen over the past year. Should the economy perform as projected by Treasury in the Mid-Year Economic and Fiscal Outlook (MYEFO) over the out-years, we will see Australia’s record run without a recession extend beyond the thirty-year mark.
“The Government’s MYEFO reconfirmed the 2018/19 Budget’s expectation of a return to surplus in the 2019-20 year with the projected Underlining Cash Balance of $4.9 billion, more than double the $2.2 billion predicted in May. The path of debt reduction over coming years was also ahead of expectations – an outcome that would hasten the reconstruction of the fiscal buffer that could be called on in the event of a sharp downturn,” Mr Willox said.