Budget deficit $4.4 billion better than expected, comes in at $33.2 billion for 2016/17

AUSTRALIA’S budget bottom line has improved by $4.4 billion in just five months, thanks to lower than expected spending on social services.

Treasurer Scott Morrison said the government had held firm on its commitment to cut spending. Picture: AAP

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AUSTRALIA’S Budget bottom line has improved by $4.4 billion in just five months, thanks to lower-than-expected spending on social services.

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New figures show the final deficit for last year’s federal Budget was $33.2 billion, down from the $37.6 billion hole forecast in this year’s Budget.

The boost was partially driven by an increase in tax payments, including $590 million in extra revenue from company taxes.

Government payments came in below earlier forecasts, with spending on the National Disability Insurance Scheme down $886 million, due to a slow rollout that saw a more gradual transition of people taking up cover.

Spending on border protection and offshore detention was also $256 million lower than predicted.

The overall deficit ranked as the smallest since 2012-13.

Opposition finance spokesman Jim Chalmers said the budget results were more ‘good luck than good policy’. Picture: AAP

Treasurer Scott Morrison said the government had held firm on its commitment to cut spending. “We’ve kept the expenditure under control and I think (the) figures demonstrate that cautious, calibrated and wise approach that we have been taking to the nation’s finances,” he said.

But Opposition finance spokesman Jim Chalmers said the results were more “good luck than good policy”.

“We still have gross debt at half a trillion dollars and rising, with no peak in sight,” he said.

It comes as a new report from the World Economic Forum ranked Australia 21 out of 137 countries for its competitiveness on the global stage, up one spot from last year.

Australia ranked among the best in the world for health, primary education, higher education, training and financial market development.

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