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John Kehoe

Spending pressures make third surplus unlikely

The treasurer has delivered a solid second budget surplus of $15.8 billion on the back of booming income tax receipts, but future spending pressures are emerging.

John KehoeEconomics editor

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Treasurer Jim Chalmers has delivered a solid second budget surplus of $15.8 billion on the back of booming income tax receipts, but future spending pressures are building.

Spending last financial year was $10 billion lower than forecast, due to a stronger labour market causing less demand for welfare payments and the government delaying about $4.2 billion in grants to the states for infrastructure and other social programs.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com

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    Original URL: https://www.afr.com/policy/economy/spending-pressures-make-third-surplus-unlikely-20240930-p5kehh