The Federal Government is to continue spending more than it earns for at least the next two years at least.
The Federal Budget estimates a deficit of $36.9 billion for 2022-23 and another $44 billion for 2023-24. While the economy is expected to grow by 3.25 per cent in 2022-23, it is predicted to slow to 1.5 per cent for 2023-24, a full percentage point lower than forecast in March 2022, a drop almost entirely due to global influences such as the Ukraine war and slowing economies, especially China.
Inflation is expected to peak at 7.75 per cent later in 2022 but is projected to moderate to 3.5 per cent through 2023-24 and return to the Reserve Bank's target range in 2024-25.
Below are the key categories of the 2022-23 budget.
We are providing responsible cost of living relief that doesn’t put additional pressure on inflation.
Investing in the capabilities of our people and the capacity of our economy.
The best defence against uncertainty overseas is a responsible Budget at home
By responsibly managing the Budget, we can pay for the things that Australians value the most.