Nation’s fiscal position deteriorates, says Parliamentary Budget Office

AUSTRALIA’S national debt grew again between the midyear and full-year budgets, and it isn’t pleasant reading.

AUSTRALIA’S fiscal position deteriorated by almost $15 billion between the midyear budget reviews of the Commonwealth, state and territories and their budgets this year, the Parliamentary Budget Office says.

The projected national fiscal deficit from 2015/16 to 2018/19 of $137.1 billion compared to $122.3 billion at the time of the midyear updates of all jurisdictions.

The PBO said in a report today about 60 per cent of the deterioration in the national fiscal balance was due to a downward revision of $8.9 billion in the projected Commonwealth balance.

The PBO said the national fiscal balance is projected to return to surplus by 2019/20, driven by the states returning to the black in aggregate terms in that year.

National net debt is now projected to rise to $428.5 billion in 2018/19 (22.6 per cent of gross domestic product) compared with $397.6 billion (20.8 per cent of GDP) at the time of the midyear updates were delivered.

National net debt is projected to plateau in 2019/20 at $428.7 billion.