Economic Insights - Federal Budget 2022-23


Hear BT Chief Economist, Besa Deda cover the key economic insights from the 2022-23 Federal Budget.

We have also included our comprehensive report from last night with the key takeaways noted below:

  • The mix of a faster-than-anticipated economic recovery and booming commodity prices have delivered improvements in the budget bottom line. A deficit of $79.8 billion is projected for 2021‑22. In 2022-23, a deficit of $78.0 billion is expected.
  • A package to ease cost-of-living pressures and new spending on defence and disaster relief are key features in the Budget. Businesses have also shared in the spoils with incentives to encourage small businesses to go digital.
  • With an election less than two months away, the Government has needed to strike a balance between budget repair and easing cost pressures for households without unduly fuelling inflation further. Whether the Government struck the right balance is contentious, but arguably the cash handouts are modest.
  • Government debt is expected to peak earlier and at a lower share of GDP. Australia’s debt position remains lower than other comparable countries and interest payments are projected to remain low as a share of GDP.
  • Budget repair is important because it helps shield Australia in the next crisis or downturn. Over the longer term, the Federal Budget position is vulnerable to fiscal slippage.
  • The pandemic gave rise to an opportunity to push forward sorely needed reforms to enhance productivity, including around innovation and tax, to support Australia’s long-term growth. But this opportunity has largely been missed.

Download – Federal Budget 2022 Economic Commentary

Economic Insights - Federal Budget 2022-23


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