The Australian Federal Budget for 2023-24, the second handed down by Treasurer Jim Chalmers and the first post COVID pandemic, is focused on providing cost-of-living relief to Australians most in need and targeted measures introduced to ease the cost of doing business.
The Budget forecasts a small surplus of AU$4.2 billion or 0.2% of GDP for 2022-23 – the first in 15 years – on the back of high commodity prices and a strong labor market. The surplus is predicted to be short term and expected to return to a deficit of AU$13.9 billion in 2023-24.
The following 2 years are anticipated to be the slowest global growth in in GDP over the two decades resulting in the forecasted growth rate to reduce from 3.25% in 2022-23 to 1.5% for 2023-24 before recovering to 2.25% in 2024-25.
Tricor’s view of the Australian federal budget is that in providing a small surplus in 2022-23 and trying to combat the increased inflationary pressures against the backdrop of a slowing global economy, it is prudent in the short term however could be seen as lacking in long-term vision and growth strategies to further enhance Australia’s position as a future focused, productive and successful economy on the world stage.
Read Tricor Australia's Commentary on the Federal Budget 2023-24 which provides a snapshot of the main fiscal measures announced.
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