‘Restraint’: How Albanese government drove budget bottom line
As Finance Minister Jim Chalmers prepares to hand over the 2026-27 federal budget, the budget’s profitability is expected to be $44.9 billion stronger than forecast in December and more than $250 billion stronger than what the Albanian government inherited in 2022.
Reform of capital gains tax and negative adjustment, one-off cash stimulus and fuel security are expected to be high on the agenda when Mr Chalmers presents his budget for the next financial year on Tuesday evening.
The budget is expected to show deficits are lower each year compared to both the mid-year budget update in December and what the Albanian government inherits in 2022.
As a result, it is estimated to be $263.8 billion better than the figure taken over that year.
This is due to additional savings and reprioritization of $63.8 billion, consecutive updates that have brought each dollar of revenue growth to its lowest level for the first time, and growth in real payments averaging just 1.5 percent for the eight years through 2029-30 (the lowest rolling eight-year average in almost thirty-five decades).
“Under the Labor government, debts are lower, deficits are smaller and the budget bottom line is stronger,” Mr Chalmers said.
“We have made a huge improvement in the budget since we were elected and have made another improvement since the last update in December.
“What’s driving this improvement in the budget is the savings we’ve found and the spending restraint we’ve shown, and you’ll see that (on Tuesday).”
Finance Minister Katy Gallagher said the government was making “responsible decisions” to improve the budget while continuing to invest in services.
“We have achieved almost $180 billion in savings and reprioritisation since we came into government, which has helped put the budget on a stronger footing,” he said.
“This is about responsible economic management that makes the budget more sustainable while still serving society.”
