US EditionBudget Forum 2025: A Balanced Budget in 2035-36 is Plausible, But Better Repair Work is Needed
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Budget Forum 2025: A Balanced Budget in 2035-36 is Plausible, But Better Repair Work is Needed
With unemployment low and commodity prices favourable, the federal budget would already be in balance under prudent budget management, but that has been lacking for some time. Instead, a budget deficit of 1.5 per cent of GDP is expected in 2025-26. This budget deficit is structural, not cyclical, and so it will not vanish naturally. Repair work is therefore needed. The 2025-26 Budget, in its Table 1.2, forecasts that it will take until 2035-36, …
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