The Australian Office of Financial Management is expected to reduce the amount of debt it plans to seek this year after the federal government’s 2021-22 budget deficit emerged $50 billion better than initially forecast.

The federal government will hand down the budget on October 25 and Treasurer Jim Chalmers confirmed on Tuesday that the fiscal position for the year to June 30, 2022, will show a deficit about $50 billion smaller than the $79.8 billion deficit forecast in April.